Execution Quality:Electronic Order Books Dominate
New reports from Celent on Execution Quality in NYSE and Nasdaq stocks found that electronic order books (EOBs) such as BATS, Nasdaq, NYSE Arca and Direct Edge's EDGA and EDGX, are leading performers when speed and price are taken into account, but the NYSE specialists/DMMs are the fastest, except for small orders.
Bank of America Merrill Lynch Rolls Out ETF Algorithm
Bank of America Merrill Lynch has rolled put ETF-aX, an exchange-traded fund algorithm which purports to identify the most efficient combination of ETF, stock, and futures and then automatically trade them to source liquidity and find the best prices.
Direct Edge Becomes Newest U.S. Equity Exchange
Electronic market operator Direct Edge Holdings LLC became the newest equity exchange in the U.S. this week, converting its alternative trading platforms EDGX and EDGA to formal exchanges.
Colocation and Liquidity Provisioning: An Uneven Playing Field
Enhanced access to trade execution venues has attracted considerable attention from the industry, the media and regulators. Batterymarch’s Director of Trading Dragan Skoko discusses how colocation has tipped the balance between liquidity providers and users.
Is The SEC's Circuit Breaker Inviting Rogue Traders?
The test run of a market-wide circuit breaker instituted last month by the U.S. Securities and Exchange Commission has been well-received across Wall Street, but could it open a Pandora’s Box of rogue behavior as currently constructed?
SEC Circuit Breaker May Not Have Stopped May 6 Crash
Shares of Citigroup Inc. triggered alarm across Wall Street last week when an erroneous trade sent the banking giant’s stock down 17 percent, activating the U.S. Securities and Exchange Commission's two-week old circuit breaker.