Investment Europe | November 15, 2017
Unintended consequences of Mifid II could undermine the broader benefits that the ETF market stands to gain from increased transparency around trading and costs, according to Simon Barriball, head of ETP Trading in Europe for ITG.
The technology company for some time has been assessing the practical implications of Mifid II on trading, given its history of enabling trading through the Posit and Posit Alert solutions used in markets globally. ITG’s technology addresses liquidity, execution, analytics and workflow on trading desks.
“ETFs are becoming more than just passives,” notes Barriball, outlining how the role of exchange traded products is evolving from just being a matter of passive versus active choice. Increasingly it is about cost issues per se, whether the investment is being actively or passively managed.Read more >
The Trade | October 04, 2017
Traders on the buy-side have been increasing their efforts to gain knowledge and understanding of the algorithms they use in order to satisfy best execution requirements under MiFID II.
Speaking at The TRADE’s MiFID II Checklist event in London this week, a panel discussed how the use of algorithms has shifted ahead of MiFID II.Read more >
Traders Magazine | September 20, 2017
WHEEL. OF. ALGOS.
Yep, agency brokerage and technology company ITG has rolled out an approach where various broker dealer algorithms are evaluated, normalized and eventually rewarded for their performance.
Enter the Algo Wheel. Soft launched by ITG late in 2016, the Algo Wheel is a broker-neutral tool for allocating trades among your broker algorithms in an unbiased, systematic fashion, which allows a buy-side trader to establish a quantifiable method for evaluating and rewarding brokers for good execution performance.Read more >
Tabb Forum | September 19, 2017
On 28 August 2017 the European Commission published a delegated regulation amending the definition and allowed behaviour of systematic internalisers. What are the concerns around systematic internalisers, what are the requirements for SIs, and what does it mean for traders?
Systematic Internalisers were originally conceived in MiFID I in 2007, but have been little used thus far, as banks and brokers were able to cross orders in Broker Crossing Networks (BCNs). Under MiFID II, however, systematic internalisers are expected to play a much bigger role in the European equity trading landscape, as BCNs will be banned, and the dark caps of 4% per platform and 8% overall are expected to curtail dark MTFs’ use of the reference price waiver. So under MiFID II the new tools offered to institutional equity traders will be:
– Revamped systematic internaliser platforms brought to market by banks, brokers and electronic market-makers, which publish principal quotes to the market;Read more >
– Block trading MTF platforms (such as POSIT Alert) that use the large-in-scale waiver and are completely dark, often utilising conditional orders; and
– Periodic Auction platforms (such as BATS Periodic Auction), which feature limited pre-trade transparency during an auction process
The Trade | September 06, 2017
ITG is to launch POSIT auction as a lit book across the EMEA region ahead of MiFID II’s trading caps in January 2018. The service is a new lit segment on the POSIT MTF running periodic auctions for matching opportunities submitted to the POSIT auction order book.
It was designed to provide a low-impact approach to finding liquidity while protecting traders during price discovery including price collars, limit and peg orders types, ITG said.Read more >