What are the top market structure issues for sell-side firms in 2023? With the new year off to a fast start, brokerage firms are facing a variety of evolving issues that could impact their trading businesses. On the horizon are proposed regulations to reform U.S. equity trading, increased best execution obligations, innovations in ATSs, 24-hour trading, and shortening the settlement cycle to T+1.
In the past, European traders increased their allocation to algorithmic/direct market access (DMA) while reducing high-touch trading. This year, the biggest increase was seen in program trading by about 34%.
Although developing advantageous data projects requires considerable effort,
the rewards typically include significantly reduced trading costs, enhanced
trader effectiveness, and increased overall returns. Taking a strategic
approach can help realize these benefits, while managing the costs involved.
By some estimates, the difference between making even small improvements,
versus not doing so, can be hundreds of millions of dollars.
Although developing advantageous data projects requires considerable effort,
the rewards typically include significantly reduced trading costs, enhanced
trader effectiveness, and increased overall returns. Taking a strategic
approach can help realize these benefits, while managing the costs involved.
By some estimates, the difference between making even small improvements,
versus not doing so, can be hundreds of millions of dollars.
Given the market’s resiliency and traders working from home during the COVID-19-fueled volatility, some market observers have questioned the centralized trading desk mentality that has been pervasive on Wall Street.
At times like these, two major factors come into play: first, your trading technology’s ability to process and manage the data coming into the platform, and secondly, how well-established automation is within the firm.
Topics such as market data costs, natural language processing, MiFID II research unbundling, Algo Wheels, exchange startups, market structure, dark pools, and desktop interoperability, resonated with the readers of the FlexAvantage industry blog.
Alistair Cree, Product Manager at FlexTrade, tackles ten questions about Algo Wheels in FX trading.
Algo wheels have become a popular technology in equities trading, but now there are signs that algo wheels are expanding beyond equities into multiple asset classes such as futures.
As asset managers become more data-driven in their analysis of execution quality, they are reallocating order flows among their broker-dealer relationships at a faster pace.
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