The fuse is burning
First Published in Automated Trader Magazine Issue 10 Q3 2008
As the momentum of change increases in European equity markets, some obvious similarities with US markets are emerging – but so also are some striking differences. Joe Wald, Managing Director and Co-Founder of EdgeTrade, a Knight Capital Group subsidiary, ponders these similarities and differences, while outlining some of what he anticipates for buyside traders in Europe.
Joe Wald, Managing Director and Co-Founder of EdgeTrade
Although European markets have started to see substantive structural change, the party has barely started; with most new trading venues still on the horizon, many of the challenges relating to fragmentation and aggregation have yet to fully materialise. Nevertheless, it is possible to identify some of the opportunities and obstacles that European buyside traders are likely to face in the near future – some similar to those already apparent in US markets, some entirely different.
Opportunity for all
One of the most striking trends yet to fully emerge in Europe will be the buyside trader’s chance to access a broad array of actionable liquidity, or the hidden liquidity that’s available electronically. The early adopters among them who seize this will have the chance to gain competitive advantage in terms of being able to generate additional alpha through the execution process. Traditionally this has been an element of the business outsourced to brokers, but with MiFID in place and multilateral trading facilities starting to take hold, this is already changing. This empowerment is available to any buyside trader prepared to look for ...
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