 Download and Print ProfileEmail this Profile
Vision for the Future
I believe we're going to see more and better technology in the exchanges and buy- and sell-side desks, an increase in trading volume, greater transparency, greater order protection rules, more and better pre-trade and post-trade analysis, more algorithm use, and more buy- and sell-side consolidation.
Fun Facts
Tell us something interesting that few people know about your professional or personal background.
I grew up and still live in rural Minnesota, 45 miles northeast of where I work. I went to college in South Dakota and spent four years as an officer in the U.S. Air Force. I have four sons, three dogs and a cat. I live in the woods by a lake and enjoy fishing, swimming, walking and biking - preferably with my boys.
INTERNATIONAL TRADING
In which international markets do you trade?
We trade in most markets.
Do you have separate traders for international trading?
We have five traders who are very capable of trading international securities.
|
RiverSource Investments
261 Ameriprise Financial Center
Minneapolis, MN 55474
Assets under management:
RiverSource Investments is an Ameriprise Financial company. Ameriprise Financial has more than $428 billion in assets owned, managed and administered.
|
Fund(s) for which you trade:
RiverSource Funds, institutional accounts, hedge funds and corporate accounts.
Types of products traded:
Common stocks (domestic and international), convertibles, options and futures.
|
Structure of trading department:
The Boston office consists of a head trader, senior trader and trader. The Minneapolis office consists of a head trader, four senior traders, one trader and one trading specialist. The head traders report to the chief administrative officer (CAO).
|
Previous Positions:
Ameriprise, 21 years; Norwest Bank, three years; Harris Upham/Smith Barney, nine years.
Education:
B.S. from South Dakota State University.
|
TECHNOLOGY
Technology used to trade equities:
Proprietary trade management system, AutEx, Bloomberg, Reuters/Bridge, Instinet and Liquidnet.
Chief Information Officer:
Glen Salow, EVP, technologies and operations.
LOOKING AHEAD
What trends/regulations/issues do you think will transform your role as a trader?
Commission-sharing arrangements are on the increase as trading desks concentrate more of their volume with their top 10 brokers. ECN usage is increasing, commission rates continue to trend lower and algorithmic trading is on the increase. Going forward, there will be more and better trading technology available to traders, as well as more and better pre-trade and post-trade analytics, and a decrease in information leakage due to increased electronic trading.
What do you hope technology can change to make your role easier?
We will implement a solution by Charles River for equity trading and compliance. The main objectives are to:
- Avoid risk through automated/electronic communications among portfolio manager, trader and broker; and compliance monitoring from a single data source;
- Lower trading costs through electronic trading connectivity to multiple simultaneous trading partners, greater access to trading partners to avoid missing trade opportunities, and better access to trading partners that offer lower commission rates;
- Make more-effective trading decisions by accessing the same trading partners available to the rest of the industry.
|
 |
PORTFOLIO MANAGEMENT
Describe your relationship with your portfolio managers? Has it changed recently? Do you expect it to change?
We feel the relationship between the portfolio manager and the trader is very important - that is how we trade. Portfolio managers have primary traders and backups. We do not have specialized traders that only trade listed, OTC or international, nor do we have sector traders who primarily trade technology or energy. Traders get meaningful information and research to portfolio managers in a timely manner.
How do you work with your portfolio managers?
The portfolio managers are involved and will be more so during the training and implementation phases. [RiverSource plans to deploy a new OMS from Charles River. See "Looking Ahead," next page.] They will have the new OMS on their desktops to enter orders and view the progress of their orders.
ALGORITHMS
Types of algorithms used to trade:
Mostly implementation shortfall.
Do you use algorithms for equities only?
Yes.
Which algorithms do you use?
Most major brokers' algorithms.
Do you build your own algorithms?
No.
How do you rate your brokers and determine which broker will get your order flow?
The portfolio managers and analysts vote every six months to determine who makes the research list. The traders also vote every six months to evaluate the performance of the brokers that execute for us in listed, OTC, international, derivatives and convertibles. Best execution is always in the forefront.
|
Interview by Maria Wakem
|
