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10:43 AM
Leslie Kramer
Leslie Kramer
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BNY ConvergEx Group Discusses New Transition Management Paradigm

Rapid advancements in technology and the expansion into new segments of traditional client base have created a new transition management paradigm, says BNY Convergex Group's Global Transition Management business. The evolution of trading and risk management technology has shifted the primary focus of transition management from operations to risk management, with the preservation of the value of a client's assets being the most important aspect of the transition.

In a new report on transition management by TABB Group, analyst Monica Schulz has drawn similar conclusions. The report, titled The Optimal Transition: Mitigating Risk and Minimizing Market Impact, explores the current state of the transition management industry. The report analyzes the major components of the portfolio transitioning process, including trends in transition management usage, differentiators between providers, and expected future demand of transition management services.

The introduction of new trading technologies, such as dark pools and crossing systems, have helped to minimize the execution risks associated with information leakage and opportunity cost, according to TABB Group. In addition, the Group cites the agency-only brokerage model as being on the cutting edge of trading technology, because of the need to be efficient at finding liquidity.

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