Chi-X's global network attractive to Talaria

Talaria Asset Management has listed two of its funds on the Chi-X exchange in what amounts to a very strategic decision, according to Talaria chief executive officer Jamie Mead.

The decision to list on Chi-X, rather than any other exchange, was partly due to the acquisition of Chi-X by Cboe Global Markets in July this year. That announcement was of "very significant interest" to Mead and Talaria.

Cboe Global Markets owns the Chicago Board Options Exchange and a number of other global exchanges and through the acquisition of Chi-X has been able to enter the Japanese and Australian securities markets. It has offices across the United States, in London, Amsterdam, Hong Kong and Singapore. It is this global network that makes it attractive to Mead.

"Partnering in the local market with an organisation that has that overseas network and capability is really about us future proofing ourselves," Mead told Industry Moves.

Talaria also recognised in Chi-X an organisation with similar growth aspirations.

"We felt that very much that the Chi-X team wanted to partner with us," Mead says.

The Talaria Global Equity Fund (Managed Fund) will be listed with the ticker TLRA and the Talaria Global Equity Fund Currency Hedged (Managed Fund) will be listed with the ticker TLRH. The funds seek to capture market gains while protecting investors from periods of weakness. The funds typically have between 15 and 45 holdings and can invest in either stocks or options.

Talaria's decision to list the successful managed funds are also about eliminating friction in the distribution process.

"We're going straight to the end user," Mead says. "It really removes all those layers of noise between us and the asset owner."

"The closer you can be to the asset owner the more rewarding that experience can be."

Of course, there are also commission implications for both the asset manager and the asset owner by removing any middle distribution layers.

The in-house knowledge and capabilities at Talaria were also crucial in expediting the launch of the ETFs, which took between three and four months.

"We have that expertise in house and consequently we have a team, a very deeply resourced business team, with direct capital market experience," Mead said

Mead says they are equally comfortable developing different channels for investors that may not find the ETF structure appropriate.