Earlier this month, The TRADE brought together participants across venues and the buy- and sell-side to examine the ongoing migration of trading volumes to the Close Auction.
In the first of four episodes, senior reporter Annabel Smith introduces our panellists and unpacks the key drivers of migrating volumes including the growing passive segment and algorithms pegged to the Close, as well as the global landscape.
Key themes:
-Passive investment
-Algorithmic trading
-The quant segment
-The European Close in comparison with the US and Asia
“People like certainty of outcome and when you go into the Close you know what you’re getting. Whereas if you send something to an algo, it may behave well, it may behave badly. If you send something to the auction chances are you’ll get the auction price” – Sal Rodriguez, EMEA head of global execution services, Instinet.
Don’t forget to check back tomorrow for the next instalment in the series: Episode 2 – Implicit and explicit costs.