The Shifting Sands of Global Trading, Part 2: The Buy-Side’s Emerging Cross-Asset Trading
Report Summary
The Shifting Sands of Global Trading, Part 2: The Buy-Side’s Emerging Cross-Asset Trading
Regulatory compliance is a new addition to the buy-side watchwords of alpha generation and execution price, quality, and speed.
Boston, February 10, 2016 – The pressure of regulation and investor demand over the last decade has accelerated commoditization of pioneering trading methods, and the buy-side’s relentless global search for alpha is driving those methods more quickly to the less mature markets, where more and more of that alpha is being found. Also, the 2009 G-20 agreement’s mandates are pushing both a new pragmatism and increased costs of capital, which make the move from multi-asset to cross-asset trading appealing, and in some markets a necessity.
This report highlights the commoditization of the buy-side’s multi-asset trading methods, the emergence of its new North American cross-asset approach to trading, and the expectation of the typical U.S. commoditization and then West-to-East 10-year migration path. It is based on an Aite Group quantitative survey and qualitative phone interviews conducted with trading, product management, technology, and C-level executives engaged in or managing institutional trading at a variety of financial institutions across the globe. This report is the second in a series—find the first here.
This 41-page Impact Report contains 34 figures and two tables. Clients of Aite Group’s Institutional Securities & Investments service can download this report.