.jpg)
The Securities Industry and Financial Markets Association (SIFMA) today released its second European Equities e-Trading Survey. The survey conducted between mid-November 2008 and January 2009 canvassed 48 buy-side investors and 9 major sell-side firms.
The results show that the equities electronic trading has continued to grow over the last three years.
“Going forward, the market expects the electronic trading volumes to continue growing over the next three years,” said Mark Austen, managing director at SIFMA.
Indeed, 70% of sell-side respondents expect to receive over 80% of their tickets electronically in 3 years time; whilst 60% of buy-side respondents expect 80% or more their flow to be directed electronically in the same period.
However, whilst a reduction of the numbers of brokers on the buy-side’s lists was observed over the last 3 years, there is no consensus this trend will continue with some buy-side suggesting they may even increase the numbers on their lists.
Self directed volumes are expected to grow although it will still not be a significant portion of the buy-side electronic flow in the future.
According to both the buy-side and the sell-side, key drivers behind the growth of e-trading are a desire to reduce costs, to achieve greater efficiency and to permit the buy-side to exercise some control on its activity.
The survey also showed that the ability to trade without giving up its identity and without moving market price were the leading factor for evaluating dark pools of liquidity. All the sell side respondents were positive about the emergence of dark pools which is a slight upswing from last year when only 78% of the sell-side were positive.
Finally the buy-side sees access to multiple trading venues and liquidity as the most important factors for algorithms providers.
The results of the equity trading survey will be a focal point of SIFMA Market Liquidity Conference which takes place today in London at the Brewery.
A separate SIFMA survey covering fixed income e-Trading was released today as well.
Please view full equity e-trade survey results at this link.
