|By Business Wire||
|January 28, 2013 02:44 PM EST||
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 to it.”
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 firms 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:
- US Hedge Fund Equity Trading 2012: Disparate and Desperate,
- US Institutional Equity Trading 2012/13: The Paradox of a New Paradigm
- European Equity Trading 2012/13: Changing the Rules of Engagement.
The Executive 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 [email protected].
About TABB Group
With offices in New York, London and expansion to Asia-Pacific, TABB 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.