Executing orders in Latin American equities has never been more complex. The region has evolved from a Global EM darling to a marketplace redefined by outsized debt, scandal, and under-performance. Within this landscape traders are shifting their behavior and managing through a more costly and less liquid environment. This call discusses the following:
- Navigating the increase in regional execution costs vs. the decline in Latin America liquidity
- The emerging conflict between global investors’ shift to self-directed trading vs. local institutional investors’ ongoing reliance on phone and manual execution styles
- Infrastructure, connectivity, and communication hurdles and the potential pitfalls of self-directed trading across Latin America
This piece was originally published in Best Execution magazine.
On the 14th January the European Parliament and Council of Ministers ﬁnally agreed a new directive to update rules for markets in ﬁnancial instruments (MiFID II). Rob Boardman, CEO of ITG Europe asks whether it was worth the wait?
The unbundling of research and trading has been a discussion topic for many years both globally and in Asia. While in theory there are many good reasons to unbundle, the practical implications have often made it difficult for asset managers to do so. However now several important business factors are pushing Asia-based fund managers to review their processes and consider how they value research and trading, while using more sophisticated tools to manage and report on who and what they pay.
In this edition of The Blotter, Juan Pablo Urrutia, European General Counsel, weighs in on the Financial Times report that The Council Legal Service is advising the national governments that the European Financial Transaction Tax (FTT) is illegal.
Final Results as of 7/17/2013
Relative to December of 2012, average spread narrowed in January 2013. Average volatility levels across widely tracked indices in January 2013 were in-line with those of December 2012. Year-to-date, volatility narrowed for constituents of the S&P500, Russell 2000 and MSCI World indices but increased for constituents of the MSCI Emerging Market Index.
The developed markets outside of Asia finished 2012 with yet another month of trade outflow while Asian developed markets saw another month of trade inflow, making December 2012 the third consecutive month. The financial sector in both the developed markets and emerging markets saw significant trade inflow. Trade costs decreased in both the developed and emerging markets from November.
In November 2012, MSCI World Index and MSCI North America indices continue to
experience trade outflow, althought not to the level of magnitude in September
2012. Similar to October, Asian regions continue to see trade inflow. Regional
emerging markets experienced trade outflow. Resources sectors of MSCI World and MSCI North America indices saw significant trade outflow. For the regional emerging markets, information technology sector saw trade outflow. Trade costs decreased in both the developed and emerging markets from October.