Buy and sell side firms are increasingly connected via data and digital services, but relationships are key to making these elements work. Asif Godall and Lu Fu recently sat down with TraderTV to discuss their model, the thinking behind it, and how they’re bringing together data, teams and technology to build a client-centric, data-driven team of the future.
Asif Godall, Head of Markets, EMEA, is the first to admit that his Markets team digital journey only started relatively recently. However, since joining Mizuho EMEA in 2019 he has seen that as nothing but an advantage.
“We didn’t have a big legacy technology stack to have to rewire,” he explains. “We’ve managed to build from the ground up and as a result of that, a lot of people that come to Mizuho are quite impressed by how lean and agile our technology stack is.”
Overseeing this tech stack is a technology team that is integrated and sits alongside the sales and trading teams.
“You’ll often hear the sell side talk about themselves as a sales and trading business. At Mizuho, we describe ourselves as a technology, sales and trading business.”
Godall continues, “the technologists sit within the sales and trading teams, and the electronic and the voice teams are completely integrated and sitting together.”
“We really want to use London’s pedigree and access to talent and technology and the clearing systems to connect global markets and global clients together.”
Asif Godall,
Head of Markets, EMEA
So, what is the result of bringing together these teams and technologies and how does that ultimately benefit Mizuho EMEA’s clients? Godall explains the result is a solitary ‘data lake’ that the sales and trading teams can use for client and trading analytics.
“When an enquiry comes through to a trader, they have a ticket that’s enriched with all the data they need to be able to accurately price that enquiry and respond to the client.”
From what instruments clients have traded in the past, through to their trade volumes and other data, Godall says that this amalgamation of data, teams and technology are allowing his team to make better prices to clients.
“As an example, we’ve just built an FX and rates pricing engine, it’s called Maverick – and yes, it is named after Top Gun, and it uses that data lake to price foreign exchange enquiry onto foreign exchange trading venues, and interest rate swap enquiry onto interest rate trading venues, simultaneously and seamlessly.”
Going forward, Godall says the next phase of development will be using cross asset data to make cross asset correlations, and ultimately make better prices to clients more quickly.
In summarising his teams approach, Godall summarises, “London has always sat between East and West in terms of trading, and now sits between East and West in terms of electronic trading. We really want to use London’s pedigree and access to talent and technology and the clearing systems to connect global markets and global clients together.”
Unlocking the value of data for clients
In today’s environment containing of large data quantities, Lu Fu, Head of Digital Markets states that a key focus for her and her team is using data to help drive and improve client-centricity.
“By the very nature of electronic trading, it’s a very data and technology driven business,” explains Fu. “We’re trying not only to unlock the value of the data, but also present that back to our clients.”
“We’re trying to understand, more holistically, our clients decision making process and we’re using that as a KPI to align our trading performance.”
Lu Fu,
Head of Digital Markets
From a Trading Perspective, Fu says that the team already has the infrastructure built to provide a lot of live information, such as the pre-trade information and post-trade analytics to show clients in real time and help form a decision on the pricing.
“We are very transparent with our clients and integrated across our voice sales coverage and eSales teams,” says Fu. “We’re trying to understand, more holistically, our clients decision making process and we’re using that as a KPI to align our trading performance.”
By understanding the parameters behind a clients decision making process, Fu is confident in her teams ability to constantly be relevant to clients evolving needs.
“For us to lend those parameters behind the clients decision making process, it makes Mizuho more relevant to our clients and using the eTrading stats and the voice stats as a door opener for us to bring more business and more services to our clients.”
In September 2024, Mizuho EMEA launched the Digital Markets team under the leadership of Lu Fu to expand the EMEA Corporate & Investment banking eTrading product offerings and to create synergies across Global Markets products.
“We’re building a team for the future. When hiring, we’re not only looking at a lot of data analytical skillsets that our clients are increasingly demanding, we’re also focussing on the communication skillset to unlock the value of data and present back to clients.”