09.29.2016
By John D'Antona

SURVEY – “Views from Leading Equities Traders” (by Worldwide Business Research )

Answer Options  

 

 

Response Percent

Sourcing liquidity 34%
Protection against HFT and information leakage 11%
Fragmented trading platforms 40%
Accurate risk analysis 62%
Regulation and compliance 44%
Reporting and transparency 32%
Measuring best execution, managing 16%
Sourcing reliable data 35%
Generating value from your sell side partners 16%
Managing a declining headcount – Having to do more with less 10%
Other (please specify)

What are the top three challenges you are facing in 2016/17?

 

Answer Options Response Percent
The data edge – A quest for increased transparency 39%
Re-evaluating your current broker relationships under Mifid II 24%
Finding the best research provider 26%
Finding alternative methods to source liquidity 42%
Cross-training, training skills of current traders 40%
Investing in new technology to streamline the trading desk 59%
Streamlining across asset classes 45%
Reduce trading desk operational cost 25%

What are the top three biggest priorities for your equities trading desk in 2016/17?

 

Answer Options Response Percent
We see consolidation now 25%
Consolidation in the next 5 years 40%
Will stay the same 20%
Liquidity remains fragmented 15%

Are we likely to see venue consolidation or will liquidity remain fragmented?

 

On a scale of 1-5, how concerned are you about information leakage when a broker is called? [1 being the most concerned]

Answer Options Very Concerned Concerned Indifferent Not Concerned Not Concerned at all Rating Average Response Count
  23 44 24 9 0 0.00 100
answered question 100
skipped question 0

 

When deciding which broker to work with, what is the most important criteria?

Answer Options Response Percent Response Count
Cost-effectiveness 26% 26
Risk management 38% 38
Breadth of coverage 20% 20
Quality of research 5% 5
Quality of algo 11% 11
answered question 100
skipped question 0

 

How is finding liquidity best achieved?

Answer Options Response Percent Response Count
Increased trading in dark pools 24% 24
Buy-side to buy-side trading initiatives 16% 16
Partnering with HFT 5% 5
High-touch trading 18% 18
SOR tools 2% 2
Algos and customizes metrics 35% 35
answered question 100
skipped question 0

 

On the back of market structure developments, who do you believe has ended up with more control of liquidity in equites markets vs. pre 2008 financial crisis?

Answer Options Response Percent Response Count
Asset managers and hedge funds 34% 34
Primary dealers 13% 13
Market makers 26% 26
Agency style banks 8% 8
Trading platforms 10% 10
Exchanges 9% 9
HFT Firms 0% 0
answered question 100
skipped question 0

 

Response to Mifid II – what are you doing?

Answer Options Response Percent Response Count
Re-tooling broker vote in preparation for compliance to regulation 21% 21
I will comply in the next 5 years – to wait and see approach 26% 26
Evaluating independent research providers 30% 30
Looking to resource research internally 23% 23
Does not apply to me, not taking any action 0% 0
answered question 100
skipped question 0

 

 How likely is it that global markets will become fully unbundled in the next 5 years?

Answer Options Response Percent Response Count
Very likely 43% 43
Somewhat likely 50% 49
Unlikely 7% 7
Very unlikely 0% 0
answered question 99
skipped question 1

 

 

Answer Options High spend Low spend Looking to customize Response Count
Market data terminals and feeds 32 39 29 100
TCA/venue-analysis 44 36 20 100
OMS High spend 30 52 18 100
EMS High spend 31 48 21 100
Data analytics 80 14 6 100
Algo providers 49 46 5 100
Co-location, networking, hosting 24 65 11 100
answered question 100
skipped question 0

How are you planning to spend your tech budget 2016/17?

 

 

 

 

 

 

 

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