Execution and Exchanges - Articles & White Papers

Quantum mechanics is a branch of physics that deals with the complex properties of atoms and subatomic particles.2 Quantum computing leverages the principles of quantum mechanics to solve problems too large or complex for traditional computers.

Banks' strategic choices will be tested as they contend with multiple fundamental challenges to their business models. They must demonstrate conviction and agility to thrive.

The adoption of amendments by the SEC to the Exchange Act Rule 15c6-1 in the United States will shorten the trade settlement cycle for most US securities transactions from the current T+2 time frame to trade date plus one business day (T+1). The shift to T+1 settlement will affect organisations across the financial services…

The Securities and Exchange Board of India (Sebi) plans to roll out an optional same-day settlement system in March next year as part of plans to introduce instantaneous settlement in 2025.

The AIMA Journal provides a timely and thoughtful review of the themes across the alternative investment industry.

In this report, we present our review of the current landscape for alternative assets in Hong Kong, and our suggestions for ways that the city can reinforce its foundations and prepare for the future, to ensure that Hong Kong regains its status as the premier hub for alternative assets in Asia.

This key industry report tracks European capital markets’ performance in 2023. 30 years on from the establishment of Single Market, Europe’s capital markets show disappointing lack of development, including on global scale. 2023 has also seen a decline in the international competitiveness of the EU’s capital markets, which…

We find that clients with stronger past trading relationships with a dealer receive consistently better prices in corporate bond trading. The top 1% of relationship clients enjoy transaction costs that are 51% lower than those of the median client – an effect which was particularly beneficial when transaction costs spiked…

This report uses different data sources to track inefficiencies across the post-trade lifecycle. AFME has developed a set of recommendations to enable and promote increased settlement efficiency, to improve the current operating environment and help prepare the ground for any potential future transition to a shorter T+1…

We show a significant loss in US Treasury market functionality when intensive use of dealer balance sheets is needed to intermediate bond markets, as in March 2020. Although yield volatility explains most of the variation in Treasury market liquidity over time, when dealer balance sheet utilization reaches sufficiently high…

From May 28, 2024, most US securities transactions will need to be settled within a day per T+1 settlement cycle. This will benefit investors making domestic transactions, but firms with international operations will face significant challenges under new trading rules. NRI's experts discuss the cross-border implications…

Around the world, there are currently more than 500 crypto-currency trading platforms, many of which also facilitate the trading of other crypto-assets and offer related products and services. The rapid development of these platforms and the technological innovations they rely on, their lack of regulatory authorisation and…

A 2022 Liberty Street Economics post discussed how liquidity conditions in the U.S. Treasury securities market had worsened as supply disruptions, high inflation, and geopolitical conflict increased uncertainty about the expected path of interest rates. This post revisits some common metrics to assess how market liquidity…

EU Member States and the UK issued EUR 898 bn in bonds and bills throughout 2Q23, which represents a decrease of 5% (QoQ) compared to 1Q23, and an increase of 21% (YoY) compared to 2Q22.

The Quarterly Assessment is on synthetic US dollar LIBOR: the remaining task in the bond market. There are thought leadership contributions on: market integrity and greenwashing risks in sustainable finance; shortening the settlement cycle to T+1; the European secondary bond market data report H1 2023; and reflections on…

Despite strong predictions based on theories of disagreement, limited empirical evidence has linked short-selling restrictions to higher prices. We test this relationship using quasi-experimental methods based on Rule 201, a threshold-based policy that restricts aggressive short selling when intraday returns cross −10%. When…

This paper shows why having a one-size-fits-all carbon pricing mechanism is not only not possible, but that heterogeneity in carbon markets is in fact needed, if they are to reach their promised potential.

A short squeeze is triggered if there is pressure on short sellers to cover their positions because of a sharp price increase or a recall of borrowed shares. This drives short sellers to close their positions early. We find that stock-day short-squeeze events are rare and short-lived. However, the proportion of unique stocks…

ESMA defined pre-hedging as any trading activity undertaken by an investment firm, where (i) the investment firm is dealing on its own account, and the trading activity is undertaken (ii) to mitigate an inventory risk which is foreseen due to a possible incoming transaction, (iii) before that foreseeable transaction has been…

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