Institutional Investor | May 18, 2018
This year’s ranking comes at an interesting time for the market: While U.S. equity prices continue to soar, a return of volatility has resulted in shakier ground for investing. As of midday on Tuesday, the volatility index had increased by roughly 21 percent year-over-year, from 12.04 to 14.66. The 2018 All-America Trading Team was decided by over 350 buy-side traders and other investment professionals at asset management firms investing in U.S. equities. Institutional Investor asked these pros to rank the best firms at trading and execution services across three main categories: electronic trading, high touch trading, and portfolio trading.
In electronic trading, firms were judged on access to large electronic blocks of liquidity, customized trading algorithms and support, pre- and post-trade cost analysis and execution consulting, among other attributes. In this category, ITG placed second after Morgan Stanley, and BofA Merrill Lynch came in third.
ITG’s chief executive officer, Frank Troise, said his independent trading firm is eyeing a larger market share in the wake of European regulation requiring separate payments for research and execution.
“Our goal is delivering unmatched client service and best-in-class products in our four key offerings: execution, liquidity, analytics, and workflow technology,” Troise said via email. “We are well-positioned to capitalize on the increased global focus on best execution and performance measurement, particularly as more institutional investors unbundle execution from research and seek liquidity via innovative technology solutions.”Read more >
The Trade | May 10, 2018
The European Securities and Markets Authority (ESMA) has published the latest set of data on the MiFID II dark pool double volume caps (DVC).
In addition to 744 instruments in January and 643 in February that hit either the 4% or 8% threshold, ESMA has detailed a further 58 equities breaching the 8% cap and 10 equities in breach of the 4% cap for the period between 1 April 2017 to 31 March 2018.
Trading under the waivers for all new instruments in breach of the DVC thresholds will be suspended from 14 May to 14 November 2018.Read more >
Reuters | May 05, 2018
NEW YORK (Reuters) – A recent move by U.S. securities regulators demanding stock exchanges do a better job justifying price changes for public market data feeds could lead to more transparency around data costs, the head of one of the world’s largest trading firms said on Friday.
Wall Street firms and industry groups have complained for more than a decade, with little effect, that market data fees charged by stock exchanges are too high and that regulators rubber stamp the exchanges’ data price increases.Read more >
Wall Street Journal | May 01, 2018
TORONTO—The Toronto Stock Exchange closed early on Friday after a technical glitch shut down all trading on Canada’s largest equity market. TMX Group Ltd. X -1.14% announced the early close roughly an hour and a half after trading stopped at 1:39 p.m. The market operator said “an internal technical issue” affected the Toronto exchange, the TSX Venture Exchange, the TSX Alpha Exchange and the Montreal Exchange, forcing the early closure of all the bourses.
One banker at a large Canadian bank said trading continued on other exchanges, including Nasdaq Inc. -owned Chi-X Canada.
Following the outage, Canadian stock-trading volumes were down by more than half, said Doug Clark, a Toronto-based managing director at brokerage Investment Technology Group Inc.Read more >
The Trade | April 25, 2018
When it comes to improving trading performance, selecting the right strategy is crucial. An ITG survey of buyside traders last year found that 85% believe strategy selection has the most potential to impact trading performance, far outstripping the importance of broker choice or venue selection. But before traders choose a strategy, they would be well served to consider prevailing market conditions.Read more >