Our Model

JonesTrading has become the alternative trading system – a relationship-based model, a network of knowledge – knowing our clients and their needs, and knowing the trades they need executed. As portfolio managers and traders seek to gain performance in an increasingly difficult environment, JonesTrading brings the ability to source liquidity in tough-to-trade situations, to execute according to client intent, strategy and style, and to do so at advantageous prices. We provide the ability to trade both through our own agency crossing network, and, as we are agnostic on technology, we route to the most appropriate electronic venues and algorithms to aid in securing opportunities for the best possible execution.

At JonesTrading we believe there is a relationship between liquidity and portfolio performance. Our sole focus is to access and create liquidity, so our clients’ investment goals are met. Our network of over 100 registered representatives nationwide have broad and deep relationships with over 1,500 institutions and hedge funds. Each day, these traders are working on behalf of clients to understand their trading strategies, to source liquidity that is pent up on the other side, release that liquidity, and execute block trades that might not have otherwise occurred. And we are able, through our knowledge of our clients and their styles and strategies, to provide market color on a real-time basis.

Institutions have trusted their trading to JonesTrading for over 40 years.

We are able to secure advantageous prices, across the greatest number of issues, in a timely way, without revealing client intent. We remain neutral and clients remain anonymous, minimizing market impact and opportunity costs.

JonesTrading has proven that its approach to equities is valued by North America’s largest institutions. The firm also uses its unique approach to liquidity creation and trading in related securities, e.g.: derivatives.

Capital market secondary financing has historically been a principal based, expensive proposition for corporations, private equity, and venture capital firms. JonesTrading has expanded its approach to liquidity creation to the capital markets. Our access to institutional liquidity is bringing a price-efficient and cost-effective new approach to these historically underserved clients.

Features

  • An experienced sales trader covers every JonesTrading client. This protects against leakage while also ensuring that each trade receives the personal attention required for best execution.
  • The client’s intent drives the trade from start to finish, without nuances becoming lost nor communication between client and trader breaking down due to handoffs.
  • The JonesTrading network comprises one of the largest independent sales trader focused platform in the industry.
  • Our 100+ registered representatives maintain relationships with more than 1,500 top-tier accounts, providing a rich pool for proactive liquidity sourcing.
  • The trading community represented on the JonesTrading platform spans everything from large traditional value and growth managers, to players in derivative and arbitrage securities, with the full range of buy side firms in between.
  • This diverse pool incorporates a range of investment perspectives on how to profit from market conditions, which translates into a broad opportunity base to match buyer and seller.
  • JonesTrading has created a unique tightly controlled trading environment that prevents client orders from becoming lost or compromised.
  • While algorithms and ECNs have their roles, their passive nature makes them less than ideally suited for completing the larger and more complex trades, particularly in high volatility market environments.
  • In contrast, JonesTrading sales traders take on the role of liquidity experts. They have their eyes and ears on the pulse of the markets at all times, and use these insights to actively source liquidity to achieve best execution for our clients.

Benefits

  • JonesTrading allows our clients to move large positions while seeking reduced market impact.
  • JonesTrading uses its network of clients to source the liquidity not visible on any other platforms. Electronic crossing networks are by their very nature passive—only able to match up existing orders in the system.
  • A trade occurs only when buyer and seller arrive at the same stock, in roughly the same size, at precisely the same time. At JonesTrading, we actively dig out the other side, sourcing liquidity in a safe, trusted environment.
  • With a single point of contact assigned to each client order, JonesTrading offers a superior level of trade management and personal care.
  • This customized trading provides the ability to regulate the speed of execution to exactly match client directives.
  • Even when the overall market environment is relatively calm, the combined impact of instantaneous news, program trading and the need to immediately capture arbitrage opportunities can work to create enormous volatility.
We would like to discuss our approach with you in greater detail: please contact Mr. Packy Jones, Executive Chairman, at 1.800.423.5933.