Tourmaline Partners, LLC

Tourmaline Partners, LLC Managing Director Tim O'Halloran shared his thoughts on the growth of Outsourced and Supplemental Trading with Jim Toes, Security Traders Association Chairman, on their May 17th Open Call. On this call, we highlighted Tourmaline’s approach, the industry landscape, as well as the factors driving the institutionalization of Supplemental Trading and leaning on experts.   “We clearly see this in our global trading business,” said Tim O’Halloran. “With broker lists down, buy-side traders routinely engage us to source liquidity from brokers with whom they don’t interact directly. While common with small and mid-cap names, which tend to have greater volatility overall, supplemental trading is also being embraced to source block liquidity and trade offshore markets.” Tourmaline Partners provides a strategic lever for buy-side traders to expand their reach, improve trading outcomes and drive investment performance.      To learn more or hear the entire STA interview, please reach out to us at the following link. https://lnkd.in/eCSZqAwp      #outsourcedtrading #buyside #commissionmanagement #hedgefunds #trading #equityresearch 

Asset managers are increasingly turning to outsourced and supplementary trading relationships to streamline operations and navigate the dynamic regulatory and competitive environment. In the second installment of our three-part series, we delve into the various business models that underpin these trading providers, exploring the expectations of asset managers and the disruptive forces at play in this fiercely competitive realm. Watch entire presentation here https://lnkd.in/eNfTVu_8

Thanks to the Jim Toes, the Security Traders Association and their team for inviting Tourmaline Partners, LLC Partners to their latest Open Call. It was our pleasure to share our thoughts and observations on the continued growth and institutionalization of both Outsourced and Supplemental Trading.  

Trading offshore markets from North America is a daunting challenge for most investment managers. As the industry’s leading trading solutions firm, Tourmaline Partners sees continued demand to help address this need – it is one of the most common issues we solve for.    Tourmaline’s unique approach complements a buy-side trader’s existing sell-side resources, providing a single broker contact to a broad panel of overseas brokers with whom they typically don’t engage directly. We have grown to over 20 personnel in our EMEA and APAC offices, 13 of whom are senior traders, averaging over 20+ years of experience. Our teams face off against over 225 brokers in EMEA and APAC alone, accessing both low- and high-touch solutions. Our local trading resources – in global equities, derivatives and ETFs – are customized for each client and supported by senior operations teams in all regions. Learn how Tourmaline Partners can expand your path to offshore liquidity, research and market intelligence: https://bit.ly/3wb9IbU #liquidity, #ETF, #derivatives, #equities #outsourcedtrading #buyside #hedgefunds #trading #equityresearch     

Demand for outsourced and supplemental trading expertise continues to grow, driven by broader market forces, notably a growth in passively managed assets, increased regulation and a greater use of technology in both trading and research.    This complements a noticeable buy-side focus on keeping expenses “right-sized” to AUM, reducing counterparty risk and a keen interest in improving trade workflow efficiencies to drive performance.    These trends have fueled a supply of new market entrants.      Greenwich Associates, in their 2022 Report, A Deeper Dive into the Outsourced Trading Evolution, highlighted that the landscape of Outsourced Trading providers has grown over 400% in the last 4 years and largely settled into three core segments – Independent / Pure Play Providers, Prime Brokers and Custodians.    In this growing field of differentiated offerings, investment managers seeking outside expertise must carefully evaluate the outsourced or supplemental trading solution as well as the firm providing it.    There is a cadence of questions that we hear often: “Is this a global solution? Can you explain your workflow? How do you seek best execution?”    But there is much that should be asked.    Perhaps the most important question is “Do you operate like a buy-side trader? Like me? Or am I really just sending all of my order flow to a single, sell-side broker?”      Or, “Is this your firm’s core competency?”   To help with this project, Tourmaline has prepared a due diligence checklist to help investment managers and asset owners know what they don’t know. We highlight 40 questions to ask any provider. The questions comprise four key areas of focus - execution capabilities, corporate governance, operational infrastructure and research acquisition capabilities.    Now in our 13th year, Tourmaline Partners knows that to achieve success, existing players and new market entrants will require the right team, independent buy-side positioning and most importantly, time to scale.           Request Tourmaline’s Outsourced & Supplemental Trading Evaluation Checklist here, or reach out to learn more at toh@tourmalinellc.com.    #outsourcedtrading #buyside #commissionmanagement #hedgefunds #trading #equityresearch

While Tourmaline’s core business is providing expert trading solutions to investment managers and asset owners, we also manage our clients’ research wallets through the use of both bundled and unbundled trading.  Broader industry trends are driving demand for this flexible offering.         Most investment managers who engage Tourmaline to trade equities, derivatives, or ETFs, also use their execution to fund research.  This includes emerging hedge funds who fully-outsource trading to us and larger managers who seek to expand the reach of their internal trading teams.      We manage commission wallets via attributed trading, CCAs, CSAs and commission aggregation. Our ability to do this is predicated on our independent buy-side positioning and our scale built over the past 12 years.  (Tourmaline faces over 425 global brokers.)   These features allow us to remunerate the sell-side and seamlessly administer a global commission management infrastructure.       Tourmaline remunerates the sell-side via high-touch execution and we fund internally managed CSAs to pay non-core brokers and independent research providers.  Many of our larger clients also fund their Tourmaline CSA via direct trading with away brokers, aggregating commissions into a centralized, anonymous account.    We collaborate with our clients to manage pre-set broker targets and communicate in real-time to decide the optimal funding path/mix.  We manage this process from our U.S. headquarters with proprietary software and we provide detailed reporting, website access, customized service and full transparency for all research funding.   Please request an Overview Deck, FAQs or a demo at toh@tourmalinellc.com.      #outsourcedtrading #buyside #trading #research #commissionmanagement #hedgefunds  

Tourmaline Partners, LLC is pleased to announce the launch of our newly redesigned website. As our firm has grown, the new site better reflects our business today, how we are differentiated as well as highlighting our global trading resources in equities, derivatives and ETFs, our operational infrastructure and commission management capabilities, and how investment managers and asset owners leverage Tourmaline.  #NewWebsite #InvestmentManagers #GlobalTrading #OutsourcedTrading #TradingSolutions

Tourmaline Partners, LLC’s new European listed Equity Derivatives trading desk, located in the heart of London, is now fully operational and ready for business. Our dedicated team is prepared to assist you with execution, price discovery, and value-added services for European listed Single Stock, Sector and Index Futures, and Options. We're covering a wide range of markets and exchanges including: 🇩🇪🇨🇭 Eurex (Germany/Switzerland)  🇫🇷🇳🇱 Euronext (France, Netherlands)  🇬🇧 ICE (UK)  🇮🇹 IDEM (Italy)  🇪🇸 MEFF (Spain)  🌍 Scandinavian markets This significant step forward allows us to offer an enhanced range of services to our valued clients. As always, your success remains our priority. Feel free to reach out to us for any queries or information. #TourmalinePartners #TradingDesk #EquityDerivatives #Finance #Investing

We have been added to the BBH Connectors Program! This collaboration with Brown Brothers Harriman enables us to offer flexible, tailor-made trading solutions in global equities, derivatives, and ETFs to BBH clients. As demand for outsourced trading grows, we're ready to meet it head-on. Our partnership with BBH allows asset managers to seamlessly integrate our trading solutions with BBH's technology, data services, and FX trading expertise. Here's to a future of enhanced trading effectiveness and increased operational resiliency! #OutsourcedTrading #TradingSolutions #Partnership

Amidst the VIX near multi-year lows and EMEA volumes down over 30% compared to last year, recent surveys suggest EMEA buy-side traders’ use of algorithmic providers has been cut by over 40% from last year. The biggest knock-on implication of this seems to be in the SMID space, where the opportunity cost of missing liquidity can be extreme, causing a refocus on the implicit cost rather than the explicit cost of execution. SMID liquidity is becoming frequently less available at the click of a button. Specialist brokers and high touch relationships are key with information and color arguably just as important as liquidity. Tourmaline has trading relationships with over 400 brokers encompassing touch points right across the liquidity spectrum. In partnering with Tourmaline, buy-side firms can dramatically extend their access to flow, content, and information, while removing the oversight and administrative requirements for an exhaustive broker list. We have created a huge network of sell-side partners – ensuring liquidity is not missed and enhancing color, allowing for better informed execution decisions. We would welcome any conversations about our model and its relevance in light of today’s liquidity challenges.