Expertise and partnership differentiate Jane Street
Jane Street: Best US Liquidity Provider/Market Maker – With the ETF market recently surpassing USD5.6 trillion in global assets, ETF adoption continues to be on a rapid rise. Supporting this growth are market makers who provide the necessary liquidity and efficient pricing. One such market maker, and this year’s winner of Best US Liquidity Provider / Market Maker, is global trading firm Jane Street.
Davor Zgaljic (pictured), the firm’s Head of Institutional Sales &Trading, believes the firm’s 20 years of ETF trading experience, commitment to technology, and emphasis on partnership have helped differentiate its offering.
“We have built our business on a strong foundation of technology-driven tools, quantitative analysis, and risk management. We also have the benefit of an employee base that’s long tenured, which means our people have lived through many market cycles and risk environments. This combination translates into materially better pricing for our clients,” he says.
Jane Street is widely active in the ETF primary and secondary markets – the firm has traded over USD1.4 trillion in ETFs year-to-date alone – and it is also active in markets for ETFs’ underlying assets.
“Trading both ETFs and their underlying securities offers us a clear advantage,” Zgaljic explains. “It allows us to efficiently source liquidity and benefit from economies of scale. Our broad participation across these markets allows us to price competitively.”
Jane Street believes its trading experience is complemented by its dedication to client service, especially as investors search for efficient ways to source liquidity and carry out their strategies. “We value strong, long term partnerships with our clients. We believe that investing in our client relationships produces better outcomes and, frankly, it’s just the right way to run our business,” Zgaljic says.
“This level of collaboration helps us understand our clients’ needs and trading goals. As a result, we are able to provide more customised, meaningful liquidity while helping our clients transfer risk more efficiently.”
Jane Street’s offering is innovating as the ETF marketplace grows more sophisticated, and Zgaljic cites fixed income markets as an example. “As new trading protocols like electronic platforms and bond portfolio trading have emerged,” Zgaljic explains, “Jane Street has been a natural partner and provider in the fixed income space because of synergies with our ETF market making business – we bring experience pricing baskets of securities rather than just individual line items, and our technology supports more efficient and scalable trading.”
Jane Street’s clients span a broad range of asset managers, wealth platforms, custodians, pensions, and insurance companies, all of which are increasingly focused on transacting in large size with minimal market impact in order to manage costs and preserve alpha. “We are an effective partner for these trading goals because we trade across a diverse set of markets and hold positions longer, enabling us to provide better pricing.” Zgaljic says.
“Providing differentiated liquidity will remain a priority, and we are looking forward to continuing to innovate in collaboration with our clients.”
Head Institutional Sales & Trading, Jane Street
Davor Zgaljic is Jane Street’s Head of Institutional Sales & Trading. In this role, Davor oversees Jane Street Execution Services, the firm’s global client trading business. Since joining Jane Street in 2004, Davor has traded a broad range of assets and strategies including ADRs, ETFs, and Equities. He helped build and run Jane Street’s business and trading operations in the Asia-Pacific region from 2006 to 2012, and he was instrumental in launching the firm’s Hong Kong office in 2010. Davor holds Bachelor of Arts degrees in Quantitative Economics and Computer Science from Tufts University.