The Trade News: “The decrease in rates, coupled with a global shift from high-touch to electronic trading, lowered weighted all-in blended rates across markets,” said Will Llamas.
Reuters: The MiFID II directive, introduced one year ago, has brought trading costs under closer scrutiny, and many asset managers have negotiated lower commission rates, Greenwich Associates said.
Nasdaq: That is less than 10% of the average algorithm commission of 0.9 cents per share reported by Greenwich Associates.
The Desk: European bond market structure is likely to diverge further from the US, as a result of the different investment models which are popular in the region, according to Greenwich Associates.
Curatia: A recent Greenwich Associates report found that 26% of corporate bond trading in the US happened electronically in Q3 — an increase of seven percentage points in a six-month span.
Bloomberg: In Europe, the impact has been clear, with brokers’ earnings from equity research falling an estimated 20 percent, or $300 million, according to Greenwich Associates.
eFinancial Careers: As Greenwich Associates data shows, electronic trading among European buy-side fixed income traders has taken off in the past year. “Algos are definitely becoming a bigger part of fixed-income trading…"
Market Media: Richard Johnson said that periodic auctions are considered to be lit trades under MiFID II as the indicative matched size is published prior to execution, but there is limited transparency...
Market Media: “Despite escalating tensions, our study suggests a possible path forward for the exchanges, with the industry clearly identifying a role for regulators to play,” Brad Tingley.
Traders: Greenwich Associates highlighted that specialist houses have not quite been feeling the benefits of these changes and, as a result, the main beneficiaries of the changes has been the larger investment banks.
