In its latest report, “Have Emerging Markets Emerged? An In-Depth Look at the Changing Landscape of Global Equity Commission Rates,” market consultancy Greenwich Associates has noted that headline commission rates have remained largely unchanged in...
Asset managers are also reducing costs, trimming budgets for FX trading desks by 1 percent on average last year, even as they boosted fixed-income budgets by 3 percent, according to a survey by Greenwich Associates. Buy-side firms are trying to...
On the risks from the recent “unbundling” regulations announced in Europe, the annual Greenwich Associates survey asks the buy side — the fund managers and other investors — to apportion its commission payments according to the services received.
Greenwich Associates, in looking ahead through 2017, sees juniorization of staffing models and low-touch delivery channels for lower-value clients as the norm. Only high value clients will command the best and brightest resources, it says.
Greenwich Associates estimates that algorithms are now used to handle up to 80% of buyside order flow, but institutions are increasingly dissatisfied with algos that cannot be customized.
The recent boom in exchange-traded fund (ETF) activity could be behind a significant reduction in commission rates on emerging market equity, according to Greenwich Associates. The company’s latest report explained premiums paid on emerging...
The premium that institutional investors pay to trade emerging markets stocks rather than their peers in developed countries narrowed markedly in 2016, according to Greenwich Associates.
Where some markets remain “complex, opaque and illiquid," active management can play a bigger role, Greenwich Associates says.
“If a pension fund or an asset manager can't get the paperwork finalized, they wouldn't be able to trade,” said Kevin McPartland. “Their compliance offices wouldn't allow it. ... Billions of dollars in trades will be affected by this.”
Flows into fixed income exchange-traded funds (ETFs) are growing rapidly with Asian institutional investors looking to earmark an increasing chunk of their investments into such products this year, according to Greenwich Associates.
