Canadian secondary equity markets continue the trend towards greater complexity and segmentation. This quarter we take a look at how recent changes in Canadian equity market structure have impacted institutional trading costs, and discuss recent proposals to further segment the market.Read more >
May 23, 2017
Closing auction sizes have quietly but meaningfully grown over the past nine months, garnering a larger share of daily trading activity. There has been a major uptick in interest in more innovative tools and methods of trading around the close, and evidence suggests an increased use of the NYSE’s D-Quote order type. But the added flexibility of using the D-Quote has created a risk-reward tradeoff.Read more >
May 01, 2017
Q1 updates to APAC Market Structure
-What are the average trading costs in Pakistan over the last 7 years?Read more >
-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?
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 >
March 31, 2017
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 >
March 15, 2017
Reinventing algos: ITG survey finds buyside traders seeking custom features and increased transparencyRead more >
February 24, 2017
Introduction of Large In Scale waiver to POSIT MTFRead more >
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.
February 22, 2017 Doug Clark
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 >
February 13, 2017
BIVA, ready to step in as Mexico’s newest exchange, is betting that its technology will convert investors.Read more >
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.
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 >