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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 ......................

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