Executive Summary This paper discusses the evolving challenge of liquidity fragmentation as a result of business, technology and regulatory pressures within capital markets. Fragmentation has accelerated in the past 24 months in both the US and European equities markets due to the implementation of RegNMS and MIFID. However, the rapid growth of liquidity has predominantly been due to the new … Read More
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Whitepaper: Adaptive Execution Platform and Smart Order Routing Use Case – June 2008
Introduction The electronic trading market has entered into a new evolutionary phase. This shift is expressed by the change in the nature of liquidity, namely decentralization for asset classes which were typical y organized in a centralized model, whilst creation and consolidation of electronic venues for asset classes which were traditionally OTC and voice-based. This shift also reflects investor demand … Read More
Whitepaper: Adaptive Event-Driven Trading in the Foreign Exchange Markets
Introduction The Foreign Exchange (FX) market has become a de facto investment asset class, with a high level of liquidity and rapidly increasing trading volumes. According to a research paper by Greenwich Associates, dated May 2008, total cross border FX trading was $99,000bn in 2007, from $71,000bn in 2006. This represents 36% growth, accelerated from a 20% rate between 2006 … Read More
Whitepaper: The Next Generation in Algorithmic Trading Liquidity Seeking Adaptive Algorithms
Introduction Liquidity fragmentation resulting from regulatory changes such as Reg. NMS (in the US) or MiFID (in Europe), combined with the aggressive competition between traditional exchanges and alternative trading venues, is making current execution algorithms “obsolete”. Therefore, are financial institutions spending mil ions on antiquated technology? This discussion paper provides Quod Financial’s view on today’s algorithms, as well as how … Read More