With the USA out getting stuffed last week, volumes dropped by half in the sample pool.
Some things to consider.
Three of Goldman's trading desks made our Top 25 list of total issues traded, including its crossing platform and wholesale desk.
Also Millennium Capital and other big derivatives desks made our Top 25 volume list.
Wholesalers had nearly 9% of volume and liquidity providers had only about 15% of the total.
What does this mean for IROs? Short-term trading is very prevalent, while rotation from, say, growth to value isn't happening.
How can we be sure? If Wholesalers are buying and shelving more shares into inventory as market makers and the liquidity providers aren't needed...
elementary, Watson, buyers aren't showing up.
On a positive note: Prime program traders were back above 30% of volume for the first time in November.
Some support still came from algorithms, despite the present deplorable state of things for investors in US equity markets.
We believe that there will continue to be significant algorithmic undercurrents in the US equity markets because traders can buy and sell securities in different currencies and perhaps capitalize marginally on spreads.
And, at least for now, these will be run by traders, not investors.
We'd prefer that it be otherwise, but as we've said before, algorithms are like the cash register of the equity markets - essential for transacting retail business.
So we will have to be satisfied with what we've got.
Finally, the Wall Street Journal noted today that pension funds have been paring US holdings and will likely reduce overall allocations to US equities next year.
This is something we've been observing and reporting to bigger clients for some time now.
All the more reason to make your outreach to pension funds count.
This means you have to know your market structure, so you can knock on their doors at the most opportune time.
It's not just story anymore, IROs, but market structure too, that swings the buyside pendulum.
Some things to consider.
Three of Goldman's trading desks made our Top 25 list of total issues traded, including its crossing platform and wholesale desk.
Also Millennium Capital and other big derivatives desks made our Top 25 volume list.
Wholesalers had nearly 9% of volume and liquidity providers had only about 15% of the total.
What does this mean for IROs? Short-term trading is very prevalent, while rotation from, say, growth to value isn't happening.
How can we be sure? If Wholesalers are buying and shelving more shares into inventory as market makers and the liquidity providers aren't needed...
elementary, Watson, buyers aren't showing up.
On a positive note: Prime program traders were back above 30% of volume for the first time in November.
Some support still came from algorithms, despite the present deplorable state of things for investors in US equity markets.
We believe that there will continue to be significant algorithmic undercurrents in the US equity markets because traders can buy and sell securities in different currencies and perhaps capitalize marginally on spreads.
And, at least for now, these will be run by traders, not investors.
We'd prefer that it be otherwise, but as we've said before, algorithms are like the cash register of the equity markets - essential for transacting retail business.
So we will have to be satisfied with what we've got.
Finally, the Wall Street Journal noted today that pension funds have been paring US holdings and will likely reduce overall allocations to US equities next year.
This is something we've been observing and reporting to bigger clients for some time now.
All the more reason to make your outreach to pension funds count.
This means you have to know your market structure, so you can knock on their doors at the most opportune time.
It's not just story anymore, IROs, but market structure too, that swings the buyside pendulum.
Source...