Sophisticated algorithms and the rise of electronic execution are seeing buy-siders place greater focus on options between high-touch and low-touch execution, according to Coalition Greenwich’s latest study.
Approximately 20% of trading activity is executed with the top broker, while 60% is executed with the top five brokers, Coalition Greenwich’s report suggests.
New Coalition Greenwich survey found that over the next year, 34% of respondents intend to increase their use of multi-dealer platforms (MDPs), while only 5% thought there would be a reduction.
Almost 40% of US electronic traders have "a lot" of interest in having "more innovative" trading venues to choose from, according to the latest Coalition Greenwich report.
Algo sales and desk coverage headcounts expected to be expanded the most in the next 12-18 months, according to a report from Coalition Greenwich.
Research found that nearly half of buy-side respondents want separate coverage relationships with their brokers’ high- and low-touch desks.
With trading volumes for US corporate bonds up 34% year-on-year, the only feasible way to meet this demand is to price and quote bonds faster than a human could via point-and-click, finds Coalition Greenwich report.
The aggregation of all the data necessary for managing the risk of firms’ portfolios was highlighted as the top challenge among risk professionals.
“Factors including cost and quantifiable return on investment (ROI) still hinder traders who are considering the adoption of new trading technology,” however sentiment towards e-trading is increasingly positive, says Coalition Greenwich.
Across both the UK and Europe, managers are giving their top algorithmic broker almost 30% of their electronic order flow, according to Coalition Greenwich’s research.