Tue, Oct 23, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

How the move from floor-traded markets to screen-traded markets can haunt investors and traders

Monday, November 13, 2017

Komfie Manalo, Opalesque Asia:

One of most significant structural changes in financial markets was the move from floor-traded markets to screen-traded markets, observed Harold de Boer, Managing Director, Member of Management Committee and Member of Board of Directors at Transtrend. These changes have affected the market dynamics with far reaching unintended consequences.

"A great example is the meaning of 'the open', de Boer told participants of the Opalesque 2017 Netherlands Roundtable when explaining the consequences. He added, "On floor-traded markets, there was an equilibrium process without trading. In the hour before the market opened, market participants called their brokers and told them what they planned to trade. And brokers typically replied with remarks like 'we see a lot of buyers coming in' or 'we expect the market to open higher'. And market participants adjusted their orders based on that information. Effectively, this was an equilibrium process without trading."

He further explained that in screen-traded markets, participants route their orders to the execution strategies of brokers. These strategies do not discuss with each other on or around the trading floor without actually trading.

The execution of these strategies does not send all relevant information back to ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. BB&T Securities to bolster alternative investment offerings with CAIS platform[more]

    Laxman Pai, Opalesque Asia: The financial services firm BB&T Securities has selects the financial product marketplace CAIS to expand alternative investment access for advisors. A press release from the wholly owned subsidiary of BB&T Corporation said that with CAIS, it will gain access to pr

  2. Europe: Europeans up interest in unconstrained bond strategies, Generali steps up efforts to build multi-boutique business, Nordea bank in new Russia funds complaint, FCA proposes climate risk reporting duty for asset managers[more]

    Europeans up interest in unconstrained bond strategies Unconstrained bond assets are on the rise. Across both retail and institutional accounts, assets under management in these strategies rose from $153.2 billion in Q2 2013 to $289.7 billion in Q2 2018, for a five-year compound annual

  3. Robert Citrone's discovery cashes in on bearish bets[more]

    From Institutional Investor: The macro hedge fund is riding strong gains since mid-year thanks to savvy wagers against Italian fixed income and other instruments. Macro hedge funds are finally getting a reprieve, between the bond market selloff and overall financial market volatility - two even

  4. Hedge funds at the 'core' of stock slump may be done offloading, Why hedge funds will stick with ever-risky short volatility trades[more]

    Hedge funds at the 'core' of stock slump may be done offloading From Bloomberg: One quantum of solace for bruised stock bulls: Some of the usual suspects behind last week's rout may be done frightening markets. Equity long-short hedge funds are among the worst-performing categori

  5. Investing: Billionaire Leon Cooperman explains how he ended up investing his personal money in pot stocks, U.S. fund investors pull most cash from bonds since February -ICI[more]

    Billionaire Leon Cooperman explains how he ended up investing his personal money in pot stocks From CNBC: Billionaire hedge fund investor Leon Cooperman confirmed to CNBC on Wednesday that he has personal money in the cannabis industry, noting investments in a few young marijuana companie