Execution and Exchanges - Articles & White Papers

What impact will shorter US equity settlement cycles (from two days after trade date, to one day) have on financial market activities and indices?

This research explores the impact of over-the-counter (OTC) market frictions on liquidity within the UK gilt market, utilising the comprehensive MiFID II dataset spanning from September 2019 to November 2020.

This is issue 79 of The TRADE, which covers a variety of topics relating to trading, settlements, custodianship, and exchanges.

On May 28, the U.S. trade settlement cycle will be condensed to one business day (T+1) from two (T+2). T+1 marks a crucial shift for the industry as it eliminates a one-day buffer between trade execution and settlement.

The quarterly reports covers the international bond markets, both primary and secondary. Also covered are repo and collateral markets.

Inside this note, we analyze 2023 trends for fixed income markets issuance, trading average daily volume (ADV), and outstanding across the total market, U.S. Treasuries (UST), corporate bonds (corporates), mortgage-backed securities (MBS), federal agency securities (agency), municipal bonds (minus), and asset-backed…

To tackle some of the questions around how AI is being deployed by investment managers, we assessed the current scope of AI integration and use cases across global managers’ investment processes and strategies.

Inside this note, we analyze 2023 trends for stock market performance, volatility, volumes (cash equities, ETFs, options), and capital formation.

The focus of this report is the international bond market in Asia, meaning debt securities issued in a market outside the issuer’s home jurisdiction, which could be in the Euro, global or foreign markets, without necessarily depending on whether a bond is cleared on international central securities depositories (“ICSDs”).…

This report underlines the transformational role that bond markets can play in funding the investment that the EU needs for sustainable economic growth and competitiveness and provides recommendations on how the EU can further develop a regulatory framework supporting the ongoing development of bond markets.

This study, published in partnership with zeb Consulting, shows the potential that stronger financing via capital markets offers for Germany. Among the key findings, the report shows that for decarbonisation efforts alone, the bar is set very high in Germany. The German government has committed to reducing greenhouse gas…

In 2023, against the backdrop of the Israel-Gaza war, the continuation of the war in Ukraine and increased political tensions, the domestic market capitalisation went up considerably (13.6%) year on year, while the value traded, number of new listings and investment flows went down. Meanwhile the volumes of derivatives…

EFAMA research estimates that 40% of daily FX flows are at increased risk. A recent EFAMA survey of European fund managers estimates that 40% of daily FX flows will no longer be able to settle through the CLS platform. On a regular trading day, this could amount to USD 50-70 billion, whereas in volatile markets this figure…

Liquidity in the core European bond markets is generally good, as defined by the ability to execute larger than average transactions, relatively quickly, without significantly moving the market. However, in recent years liquidity has become much more sensitive to both episodes of unexpected volatility and regulatory…

In over-the-counter markets, dealers facilitate trade by providing liquidity and acting as intermediaries. The authors present a model that links the relationships of these intermediaries to market liquidity, and they empirically test the model using supervisory data from the U.S. single-name credit default swap market.

A commonly used measure of market liquidity is market depth, which refers to the quantity of securities market participants that are willing to buy or sell at particular prices. The authors review the many measurement decisions that go into depth calculations and show that inferences about the evolution of U.S. Treasury…

The use of AI in financial markets involving full end-to-end automation without any human intervention remains largely at development phase, but its wider deployment could amplify risks already present in financial markets and give rise to new challenges. This paper presents recent evolutions in AI in finance and potential…

A weekly commentary from Nasdaq's Chief Economist, Phil Mackintosh, looking into a range of topics from trading trends to spreads and stock options..

Participants in the U.S. equity market operating from the Asia-Pacific region are the most significantly disadvantaged by the difference in time zones: the major Asian financial centres—Tokyo, Hong Kong and Singapore—are 13 or 14 hours ahead of New York, depending on seasonal daylight-saving times.

A weekly commentary from Nasdaq's Chief Economist, Phil Mackintosh, looking into a range of topics from trading trends to spreads and stock options..