Thinking

  • May 23, 2017

    Traders like flexibility but auction quality is little changed.

    Read more >
  • Q1 updates to APAC Market Structure

    -What are the average trading costs in Pakistan over the last 7 years?
    -What markets saw volumes reach 12-month highs in February and March 2017?
    -What 6 areas did SGX agree to address following last summer’s market outage?

    Read more >
  • MiFID II implementation may significantly affect investors’ ability to source dark liquidity effectively. Broker crossing networks will disappear, and certain types of dark trading will be mostly restricted to midpoint.

    If triggered, the introduction of double volume caps will limit certain dark trading volumes per stock to 4% in a single dark pool and 8% across all dark pools. The double volume caps are likely to result in six-month dark trading suspensions for many stocks, increasing market complexity around trading suspended stocks and tracking the status of each stock.

    Read more >
  • The Performance Driven Trading approach seeks to simplify the process, reduce the potential for trader bias, and provide an evolutionary path towards relative performance measurement with continuous process improvement, in collaboration with the broker community.

    Read more >
  • Reinventing algos: ITG survey finds buyside traders seeking custom features and increased transparency

    Read more >
  • February 24, 2017

    Introduction of Large In Scale waiver to POSIT MTF
    We are pleased to announce that POSIT MTF is now authorized to use the Large In Scale (LIS) pre-trade transparency waiver. Trades concluded by opposing LIS orders will be excluded from the calculations for the 4% or 8% dark trading caps that will be introduced in January 2018, and will not be restricted if a cap-triggered suspension is in place. We will provide further details on how you can make use of this service as we near the end of implementation.

    Read more >
  • ITG Canada has noticed that the ability of the average agency broker to gain top-of-book priority in Canada has diminished over the past 24 months. In our latest Canadian market structure update, we take a deep dive into how the introduction of speed bumps and exotic orders types has likely harmed the ability of investors to capture spread, and we offer some potential solutions for traders and regulators.

    Read more >
  • BIVA, ready to step in as Mexico’s newest exchange, is betting that its technology will convert investors.

    Access to Mexico’s equity markets via the national exchange Bolsa de Valores (BMV) experienced several significant and disruptive infrastructure issues over the course of 2016. Highlighting the need for venue competition, local regulators are backing the creation of the Bolsa Institutional de Valores (BIVA)—an alternative venue serving domestic and international investors. BIVA is currently awaiting approval from the Ministry of Finance, expected this month, and anticipates a 3Q17 launch date. If successful, BIVA will be the first competitive exchange for LatAm markets.

    Read more >
  • February 02, 2017

    Strategy tips from ITG’s Colleen Ruane & Phil Pearson

    The Tick Size Pilot Program has resulted in increased liquidity for included small-cap stocks—but that comes at a price.

    ITG’s analysis, which draws on its proprietary Global Peer database of tick pilot trading by more than 100 institutional investors, finds that trading costs since the pilot launched in October 2016 are almost 50% higher, on average, compared with the control group.

    Read more >
  • The Securities and Exchange Commission has voted to adopt new rules affecting the management of liquidity risk in mutual fund portfolios. The rules are set to take effect in late 2018 for most mutual fund managers, with smaller managers (<$1B AUM) given until mid- 2019 to comply). While these regulations will impose restrictions on what assets funds can hold and in what quantities, we believe that funds which adapt appropriately to the will be rewarded with lower transaction costs and higher returns for their investors.

    Read more >