How Far Can Asset Managers Really Take Trade Automation? 

James Robb, Senior Consultant

Trade automation isn’t new, but it’s changed a lot in the past few years. OMS platforms have started pulling in EMS-like capabilities and execution venues have stepped up their automation game. Asset managers are looking at this with fresh eyes – especially across Fixed Income, FX, and ETFs – opening the door to more scalable, low-touch trading.

Having recently led an automation project, I’ve seen firsthand what works, what doesn’t, and what I wish I’d known before we started. The big question is: how far can we actually go?

The dream vs. the reality

The idea of fully automated, no-touch execution sounds great. In theory, it means seamless trade routing, AI-powered broker selection, and traders focusing only on high-value execution. But in reality, there’s always a limit.

Take Fixed Income – years ago, automating bond trading just wasn’t feasible. Now, execution venues like MarketAxess & TradeWeb are pushing automation further than ever, offering solutions like Auto-X™ & AiEX which allows fully automated execution based on liquidity and pre-set pricing rules.

But the real challenge isn’t the technology – it’s the people, processes, and governance.

What actually works today?

• High-volume, low-risk trades are a no-brainer
  In my experience, firms can automate large chunks of their book, particularly for passive strategies.

• Portfolio trades and Market-on-Close executions? Automated
  When we rolled this out across all Passive & Enhanced Index funds, using automation to trade at the benchmark close was a huge efficiency gain.

• AI-driven execution venues are getting smarter
  We’ve seen big improvements in smart order routing, but there’s still a gap between what OMS providers offer and what dedicated execution venues can do.

Where do firms hit a wall?

• Not all trades are created equal
  Contingent, multi-day, or illiquid trades still need a human. That was a key lesson from our implementation—knowing what should and shouldn’t be automated is just as important as the automation itself.

• Market risk can derail everything
  One of the biggest lessons? Volatile markets break automation rules. We learned quickly that having a kill switch in place was essential—otherwise, you risk the system making bad execution decisions in unstable conditions.

• Portfolio managers and traders aren’t always on board
  The hardest part wasn’t the tech – it was getting buy-in. PMs saw automation as shifting risk onto them, and traders worried about losing control. Ensuring transparency, documenting edge cases, and focusing on early outcomes can help. Realism is important, avoid trying to hold the ‘machine’ to higher standards than the existing process. Clear communication and strong governance are essential.

So, how far can automation really go?

AI, algo trading, and execution optimisation are pushing boundaries, but governance, risk, and trader oversight mean full automation still isn’t realistic for many firms. The sweet spot? Firms automating intelligently—targeting the right trades while keeping human oversight where it matters.

The Future of Trade Automation: Embracing Innovation and Efficiency

Automation is here to stay, continually pushing the boundaries of what’s possible. As firms increasingly recognise the value of their data and structure it effectively, new automation opportunities will emerge. Today’s platforms already leverage AI for price discovery and broker selection, and we can expect OMS platforms to further expand their capabilities and offer seamless integrations as these technologies mature. The future of automation holds immense potential, and those who embrace it will lead the way in innovation and efficiency.

Thinking about automation in your business? 

At Liqueo, we help asset managers navigate trade automation – from selecting the right OMS/EMS setup to ensuring governance is watertight. If you’re looking to streamline execution without losing control, please get in touch.