Equity trading costs in developed Asian markets increased by 100% – and leapt by more than 200% in certain other of the region’s markets – in the two years to December 2008, largely in response to heightened volatility, according to a study by agency broker and technology provider Investment Technology Group (ITG).
William J. Brodsky, the newly-appointed chairman of the World Federation of Exchanges (WFE), asserted that the global financial markets are at a “critical juncture” in their evolution, as the federation laid out three priorities for 2009.
Banks looking to sell off their asset management arms could provide opportunities for buy-side firms to bolster their operations in 2009, according to Richard Phillipson, a principal at investment management consultancy Investit.
US Investment managers that are taking active measures to reduce expenses are targeting average cost cuts of 22% by the end of 2009 as falling portfolio values shrink revenues, according to a new survey by research and consulting firm Greenwich Associates.
The expected contraction of the hedge fund industry could lead to a liquidity drought in the equity markets, according to Ana Avramovic, portfolio strategist at Credit Suisse.
Although many buy- and sell-side firms are cutting jobs, there is still steady demand for electronic trading expertise, according to Marcus Newman, director and specialist in the electronic, algorithmic and program trading markets at recruitment firm Riversdale Consulting.
Neonet, a Swedish-based agency brokerage and technology provider, has called off cooperation talks with a “counterparty”, widely believed to be German stock exchange group Deutsche Börse.
The UK Financial Services Authority (FSA)’s decision last week to lift its ban on short-selling UK financial stocks but extend its disclosure requirements strikes the right balance between regulatory control and preservation of a vital market function, according to Arturo Bris, professor of finance at the Institute for Management Development (IMD), a Swiss business school.
Pension funds’ and other end-investors’ confidence in asset managers has suffered alongside trust in investment banks, according to Bob McDowall, research director for Europe at research and consulting firm TowerGroup.
The short-selling ban on 34 UK financial stocks, imposed by the Financial Services Authority (FSA) on 18 September last year, resulted in a “statistically significant deterioration in liquidity” in the 15 FTSE 100 shares affected by the restrictions, according to a study commissioned by the London Stock Exchange (LSE).