Articles and white papers on trade execution and stock exchanges. Amongst our most popular research in this section are white papers on high-frequency trading (HFT), covering for instance, "high-frequency trading and dark pools" and HFT from an asset manager's perspective. Reports on dark pools of liquidity is well featured, highlighting a need to understand dark pools in equity trading..., but also reflecting concerns over the impact of dark trading on market quality. Bond liquidity risk has been another recent investor concern, and research on bond market liquidity has been well received. Other popular research includes white papers on broker trade execution services, transition management, extreme price movements, the impact of a global withholding tax, and analysis of trading costs for pension funds. This category contains surveys and papers of interest to traders, dealers, market-makers, trading venues, stock exchanges and operators of dark pools and dealing platforms.
TABB’s outreach to the buy-side found there are still steps that much of the buy-side need to take with respect to workflows and internal practices to embrace ETFs for what they have become – an outright asset class on its own. Small to medium sized buy-side firms revealed a universal lack of expertise in primary or…
Whilst this paper by the Investment Association is focused on fixed income best execution, the central concepts and factors apply across the board. The application and specific interaction of these factors will vary from asset class to asset class but the fundamentals remain the same.
This 70-page study has been authored by the Australian Securites and Investments Commission. Using privileged data, it highlights many of the unobservable practices of high frequency traders. It analyses the key characteristics of high-frequency trading and places them in the context of wider market practices.
This document highlights the issues that must be addressed by U.S. market participants and entities registered with the US Commodity Futures Trading Commission (CFTC) in the case of a ‘hard’ Brexit. Amongst various things, it identifies exiting CFTC equivalence determinations and no-action relief that is currently provided…
This Mid-year report gives an update about the evolution during the first half of 2018. The EFAMA Fund Processing Standardisation report combines the Luxembourg and Ireland data into one single cross-border fund processing report providing (a) An aggregated view of both fund processing centres; and (b) a detailed overview,…
This paper analyzes recent trends in the size and composition of over-the-counter (OTC) derivatives markets, using the latest data from the Bank for International Settlements (BIS) and ISDA.
The clearing of over-the-counter transactions through central counterparties (CCPs), one of the pillars of financial reform following the crisis of 2007-2008, has promoted CCPs as key elements of the new global financial architecture. It is important to examine how these reforms have affected risks in the financial system…
Despite the availability of low-cost exchanges, over-the-counter (OTC) trading is pervasive for most assets. We explain the prevalence of OTC trading using a model of adverse selection, in which informed and uninformed investors choose to trade over-the-counter or on an exchange. OTC dealers’ ability to price discriminate…
Lending-based crowdfunding platforms represent an opportunity for financial intermediation that is less leveraged, less prone to runs, and easier to resolve. This column reviews the regulatory regimes for such platforms in OECD countries and the European Commission’s proposal for the EU-wide passporting regime. Regulation…
We study the impact of transparency on liquidity in OTC markets. We do so by providing an analysis of liquidity in a corporate bond market without trade transparency (Germany), and comparing our findings to a market with full post-trade disclosure (the U.S.). We employ a unique regulatory dataset of transactions of German…
Price signatures are statistical measurements that aim to detect systematic patterns in price dynamics localized around the point of trade execution. They are particularly useful in electronic trading because they uncover market dynamics, strategy characteristics, implicit execution costs, or counter-party trading behaviours…
