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Squawker high touch trading venue expands

First Published 10th February 2014

Traders' Squawks take average trade size on Squawker to €386k.

Chris Gregory, CEO and co-founder, Squawker

Chris Gregory, CEO and co-founder, Squawker

"In the nine months since we launched Squawker to the sell-side, the industry has been keen to personally and directly reconnect with one-another."

London - Squawker, the high-touch trading venue for the sell-side, has announced its latest trading statistics:

  • 80 firms are now on Squawker;
  • 300+ sell-side traders on Squawker daily;
  • €386k is the average trade size on Squawker (significantly higher in large Caps): natural block liquidity;
  • The top 20 sectors have hit rates on Squawker above 40%. Average hit rate across all sectors and markets is 18%;
  • 87% of trade invitations are accepted; proving that trades on Squawker are not prone to spoofing;
  • 45% of trades are agreed within 5 minutes rising to 70% within 20 minutes.

Chris Gregory, CEO and co-founder, Squawker, comments: "In the nine months since we launched Squawker to the sell-side, the industry has been keen to personally and directly reconnect with one-another. As the old voice Squawk-boxes became too inefficient for traders to call out their interests, traders were increasingly forced to send all their trades onto the order books or dark pools. These algo-centric venues have shrunk trade sizes significantly. Now, with Squawker established and trading, traders are once more able to execute natural block liquidity."

Squawker is a method to find a natural opposite counterpart for orders that cannot be matched internally and are difficult to execute on the order books or dark pools.

Chris Brazier, Director and co-founder, Squawker, adds: "The community is achieving the best hit rates on Squawker when traders display, or 'squawk', their interests at the beginning of the execution process. While 45% of trades are agreed within 5 minutes of the initial squawk, 70% are agreed within 20 minutes. The exceptions to this are interests in illiquid / micro-cap stocks. These are sometimes displayed for longer periods, allowing trades, which are often multiple times ADV, to be gradually put together."