Insights
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Digital Markets Propagate in the New Economy
Will the trading desk of the future hook into online marketplaces that trade fractionalized shares of real estate, or non-fungible tokens (NFTs) based on art, sports or music?
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Data Dominates Buy-Side Approach to FX Trading
Senior buy-side traders offered differing views on the definition of high-touch and low-touch trading in foreign exchange (FX) at a roundtable in May, shedding light on efforts to rank their brokers and incorporate data analytics …
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Fixed Income Trading Desk of the Future
Data is shaping the fixed-income trading desk of the future. Keeping up with the exponential rise in data from inbound liquidity, new issues, and pricing services has become a challenge for asset managers in an …
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Regulating Fixed-Income Platforms: Separating Fact from Fiction
The fixed-income trading space has exploded with innovation from electronic trading protocols to new pricing services. In recent years, execution management systems (EMSs) have expanded their functionality in fixed income to provide more efficiency and …
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Algo Wheel Takes FX Algo Trading to the Next Level
With liquidity fragmented across the foreign exchange landscape and regulations like MiFID II placing more responsibility on the buy side to obtain best execution, there has been an increased uptake in algorithmic trading. According to …
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GameStop Saga Puts Focus on Inaccessible Liquidity
Now experts are saying that ‘inaccessible liquidity’ is costing institutional investors three times as much in transaction costs, and it’s affecting the calculations made by their algorithms such as volume weighted average price (VWAP) and percentage of volume (POV), which rely on overall volumes.
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Desktop Interoperability on the Trading Desk
Everyone is talking about the desktop interoperability (interop) movement, collaboration, and open Application Programming Interfaces (APIs). It’s a sign of the evolution of the modern desktop in capital markets where traders want a better user …
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Alternative Data’s Rising Star in COVID Era
With everyone seeking up-to-the minute data, analysts and investment managers utilized foot traffic from geolocation data to quantify retail sales and disruptions to the global supply chain. The rise of new marketplaces should remove some of the onerous work of sourcing, collecting, and normalizing data feeds from multiple vendors.
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Multiple Protocols Boost Liquidity in E-Trading of U.S. Treasury Bonds
Another trend has been the mergers and acquisitions of exchanges and bond trading platforms, and joint ventures between fintech companies and fixed-income venues. Exchanges have been acquiring fixed-income venues over the past few years, which is also driving the consolidation of liquidity pools and e-trading protocols.
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Equity Market Structure Wrestles with “Inaccessible Liquidity”
Equity market participants are learning about new exchanges, order types, and periodic auctions bringing innovation and competition to the equity trading landscape. Citing the concept of “inaccessible liquidity,” asset managers pointed to the surge of retail trading by mom and pop investors whose orders are executed off-exchange on private platforms.
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CAT Compliance Ramps Up on Sell Side with Interfirm Linkages
While adhering to the CAT reporting timeline, sell-side firms are responsible for monitoring the CAT Reporter Portal and for fixing errors and rejects that come back from FINRA. So far, experts say the industry is doing very well with their data submissions. But error rates could escalate as the industry tackles more thorny order events and submits higher volumes of data.