Showing all posts by David Morgan
Tabb Group’s new report, “European Equity Trading 2012/2013: Changing the Rules of Engagement,” highlights some issues that we must hope politicians will note during their review of the MiFID regulations.
It’s no exaggeration to say that Tabb’s research profiles an equity market in crisis ─ arguably one that is dysfunctional in some important respects. “Lit book” trading volumes have again fallen sharply in 2012, and there has not been a correspondingly large increase in dark pool trading. So the predicament, as it appears to most buy-side firms, is one of vanishing liquidity. And the buy-side’s primary concern – as reported to Tabb – is how and where to find what liquidity is left.
For smaller European broking firms, particularly those engaged in regional business, the implementation and management of technology and connectivity across multiple trading venues post-MiFID is proving increasingly costly and time-consuming. Adding to this pressure, client and regulatory demands to deliver best execution have to be met in a context of declining volumes and intense competition. [...]
DECEMBER 2012 UPDATE:
2012 has seen the multi-year boom in listed derivatives trading suffer an abrupt reversal, with a 10%+ decline in year-on-year volumes. The boom had seemed to be indestructible, buoyed up as it was by the surge in world commodity markets and growth in currency futures volumes. Several other factors also contributed: wider buy-side market awareness, particularly in emerging markets, more flexible investment mandates at many firms, and the need to hedge against persistent cash market volatility.
2011 saw the highest volumes ever recorded across the world’s listed derivatives markets. Despite some quieter early months in 2012, the longstanding volume growth trend still appears to be in place, led by the surge in commodity trading and by booming currency futures volumes. Several factors continue to drive this trend: wider buy-side market awareness, [...]
This blog post also appears on ATMonitor. The regulatory push towards real-time trading risk management was addressed in a panel session at the 2012 SunGard Industry Seminar in London. The discussion pulled together of a lot of useful information for participants, but ultimately didn’t generate too much controversy. It seems that the regulators are for [...]
This post originally appeared in a longer form on TabbFORUM and also appears on ATMonitor. The noise created by the flood of new regulations proposed for the global capital markets, plus the resulting storm of debate, continues to grow louder. I’ve been participating as a technology supplier – but also as a bank depositor, retail [...]
This blog post also appears on Finextra. While discussions about the final contents of MiFID 2 seem set to continue for some while yet, the European Securities and Markets Authority has anticipated some important MiFID 2 issues in a set of Guidelines issued on February 24, 2012: Guidelines on systems and controls in an automated [...]
Interested parties have now had time to digest the European Commission’s October MiFID 2/MiFIR proposals, and major questions have been raised by a wide range of people. Looking briefly at the main areas of debate:
by David Morgan, Marketing Director, SunGard’s Global Trading business. Panel discussions can often go over the same old ground but at our London City Day I participated in one that, if it didn’t break the mould, at least broke new ground – and was fairly controversial!
Exchange Traded Funds (ETFs) have exploded in popularity with both retail and institutional investors since they were first introduced back in 1993. There is a lot of education available on the advantages of using ETFs and how to best allocate assets with them. There is, however, very little education available on how to effectively trade [...]
