Groupama Asset Management has partnered with Amundi Intermediation, merging the two trading desks to support the development of its execution business.
The decision has been made in order to adapt to evolving market demands, driven by changes to automation and regulation, Groupama said, with the goal of improving its negotiation power, optimising efficiency and more efficiently leveraging the firms’ resources.
“This project is ambitiously designed to provide Groupama’s Portfolio Manager a global extended operability,” the firms told Global Trading. “By leveraging a strong technological backbone, we ensure superior performance across various geographies and asset classes.”
They affirmed that “this partnership integration should be completed by the end of the year. All Groupama traders will join the Amundi intermediation team”.
Outsourcing and co-sourcing are increasingly popular strategies for firms, with Goldman Sachs Asset Management outsourcing its global trade execution processes to BNY Mellon back in March. A number of APAC-based asset managers are also adopting the approach, in anticipation of the North American transition to T+1.
READ MORE: GSAM outsources global trade execution to BNY Mellon
Through the mandate, Groupama’s existing technology architecture will be interfaced with Amundi Intermediation’s ALTO ecosystem. Access to Amundi’s pre-trade decision-making indicators and execution capabilities will bypass the need for significant investment and specialised teams, it added, enhancing execution, innovation and investment capacities and supporting its digital transition.
READ MORE: New Silk Road Investment outsources trading to Northern Trust
Christophe Kieffer, CEO of Amundi Intermediation, added: “Order execution activities have undergone major transformations in recent years, both to adapt to regulatory changes and to technological innovations.
“[This partnership] will enable us to continue to develop our capabilities and provide Groupama AM with a comprehensive, robust and innovative system to offer end investors the best possible conditions.”
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