Mon, Jun 29, 2026
A A A
Welcome Guest
Free Trial RSS pod
Get FREE trial access to our award winning publications
Alternative Market Briefing

Beware of the illusion of liquidity

Friday, November 13, 2015

amb
Nicolas Kageneck
Benedicte Gravrand, Opalesque Geneva:

Participants at the recent Opalesque France Roundtable discussed liquidity, and volatility levels, and the effect that high frequency trading has on them.

"We have experienced a particularly active market in the last months, global market volatility being on the rise, which is positive for our products overall and for the equity index segment in particular," said Nicolas Kageneck, from Eurex Exchange which is part of Deutsche Börse Group. "Investors and traders have increased their hedging and trading activities, which has led to greater liquidity and larger open interest in our products."

Arnaud Chretien, founder and CIO of Aequam Capital, a systematic quantitative asset manager, commented on the extreme volatility that comes from super high frequency trading groups, who are pushing the markets. This could be seen in some stocks’ extreme intraday moves, in the currency sector, and increasingly in the interest rates sector and in the commodities sector. It might create opportunities but it is still a challenge for everyone.

After Dodd-Frank, investment banks have been reducing their prop desk activities, leading to the strong growth of high frequency trading, said Julien Sureau, CEO and founding partner of Puzzle Capital, which runs a fund of funds and merger arbitrage strategies.

And those trader......................

To view our full article Click here

Previous Opalesque Exclusives                                  
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Other Voices: Nvidia extraordinary growth and the challenge of sustaining demanding valuations over time[more]

    Antonio Di Giacomo, Senior Market Analyst at XS.com, writes: Nvidia has established itself as one of the most extraordinary growth companies in the global technology sector. Over the past two fiscal years, its revenues have risen from levels close to $60 billion annually to well above $120 billi

  2. Secondaries take center stage: What the 2026 PE landscape means for GPs and investors[more]

    Matthias Knab, Opalesque for New Managers: The 2026 edition of Dechert's Global Private Equity Outlook - "Signs of a Gradual Thaw" - marks a notable shift in industry sentiment. After years of compr

  3. And, finally: Time to share it with the people[more]

    From Newsoftheweird: Leavenworth, Washington, has become a tourist destination because of the Bavarian theme businesses have adopted there, NPR reported. One shop, the Leavenworth Nutcracker Museum, houses the world's largest nutcracker collection, thanks to 101-year-old Arlene Wagner. Wagner sta

  4. Opalesque Exclusive: Private Markets Evergreen Funds - An Insider's View[more]

    Matthias Knab, Opalesque for New Managers: Private Markets Evergreen Funds: What Investors Need to Know Before They Dive In The democratization of private markets is well underway. Structural barriers t

  5. Opalesque Exclusive: Governance, Scale, and Boutique Resilience in a Consolidating Hedge Fund Industry[more]

    Matthias Knab, Opalesque for New Managers: The hedge fund industry has undergone significant consolidation in recent years, with capital increasingly concentrated among large multi-strategy platforms. Yet boutique m