Outsourced trading provider Sherpa Edge is to close. A statement posted by the firm said, “Efforts to roll-out buy-side trade execution have been challenging. Being first movers entails risks, and when we started this adventure, we certainly did not expect to begin our trek in the fog of a global pandemic. Luckily, we found some amazing partners, Exoé, with whom to cooperate. Exoé has the expertise, the infrastructure, the personnel, and the independence to deliver top-class execution services on a European scale.”
The firm launched in April 2020 and partnered with outsourced trading provider Exoé in January 2021, and had been expected to announce a new client go live in late 2022.
Co-founder, Brett Chappell, wrote, “When Bart [Nuys, co-founder] and I started out this adventure we gave ourselves three years to get the first Nordic outsourced buy-side execution desk up and running. Being first movers is never an easy task, but this didn’t stop us from trying. The pandemic did put a serious damper on carrying out commercial activity. We were lucky to find the right partners, Exoé. Their systems and people are best in class for delivering an independent service of execution and monitoring of listed assets. However, tweaking that Gallic recipe to suit the Nordic palate took longer than expected.”
He continued, “With our knowledge of market structure and regulation, it is abundantly clear that it is not so much a question of if the portfolio managers that trade themselves move to the dedicated execution desk model, it’s a question of when. The impetus behind such an accelerated move would of course be punitive actions by a national competent authority for failure to not only live up to best execution requirements and the inability to document it.”
Having had three years since launch, but not achieved the scale needed to continue, he noted that “as good traders it’s time to reevaluate [our] position. The expected revenue streams are not at levels we expected, and so I have made the difficult, but correct decision, to move on. However, the relationship with Exoé remains very solid, and I would hope and expect that those Nordic asset managers with whom we have had dialog will continue their discussions with Exoé.”
The firm’s statement concluded by noting, “We wish to thank our clients and potential clients for taking the time out to meet with us. We learned much from you, and we are richer for it. We also wish to thank Exoé for believing in us. As first movers in the French marketplace, you understood the difficulties and challenges, and we couldn’t have progressed this far without your support and faith in us. Exoé is open for business, and while Sherpa Edge Trading may no longer be proactive commercially, we would highly encourage interested parties to stay connected with the Exoé team. Exoé will be there for you.”
©Markets Media Europe, 2023
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