Depleted wallets, order allocation, CSA and algo trends, regulations and
top brokers - topics covered in new TABB Group research, "US
and European Buy-Side Equity Trading: An Aggregated View" - point to
similarities between the US and European markets, but wallets and
regulation will cause divergence," says Miranda Mizen, TABB's director
of equities research and author of the new report.
Lower volumes have hit both continents hard, but the combination of a
European wallet that plummeted in 2012 and the opening door to
commission-sharing agreements (CSAs) will cause those who trade in
Europe to choose brokers and products with a different eye. Most
importantly, equity market structure change is on the outer ring of the
SEC's radar, Mizen says. "It's in bull's eye of regulators and
politicians in Europe, and the combination of Basel III, MiFID II and
national rules will mean a fluid and uncertain trading environment".
Still, there's much that's similar,
she adds. "Demands from the buy-side for greater transparency into
algorithmic environments, a voice in the creation of new coverage
models, natural block trading products and help with markets that are
hard to navigate - all of these issues find common ground, but the
intensity of opinion and cause-and-effect has a very geographical feel
The new report, based on 177 in-person interviews conducted throughout
2012 with US and European asset managers and hedge funds specific to
equity trading in the US and major European markets, representing irms
with $33.3 trillion of global asset under management (AuM), covers
trends and outlooks for the US and European buy-side equity trading
markets, highlighting variations due to the market traded, type of firm,
geography and size. Individual results were drawn from the following
2012 annual benchmark studies:
Summary for this 13-page report with 24 individual exhibits is
available online at TABB Group. Research
Alliance Equities clients and qualified media can download the study
now at www.tabbgroup.com.
For more information or to order the report, write to firstname.lastname@example.org.
About TABB Group
With offices in New York, London and expansion to Asia-Pacific,
Group is the only financial markets research firm focused solely on
capital markets, based on the proven interview-based research
methodology of "first-person knowledge" developed by founder Larry Tabb.
For more information, visit www.tabbgroup.com.
In January 2010, TABB launched TabbFORUM,
the online global capital markets community covering analyses of current
issues, tracked daily by nearly 15,000 professionals.
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