Today’s equity market is teeming with complexity: the domination of electronic trading, the issues over High Frequency Trading (HFT), the increasing market fragmentation and the concerns over the next inevitable flash-crash or other systemic event have left many institutional investors and brokerages questioning their ability to find and protect alpha. Institutional investors that participate in block trades, and the brokerages that execute them, face a seemingly ever growing list of obstacles. The market has dramatically changed, and the traditional approach to trading is no longer sufficient.
For those institutions willing to adapt to today’s new environment, there exists a strong opportunity to find The Hidden Alpha in Equity Trading. The attached perspective details the changing markets and the various participants, underscores the growing complexity, unravels the questions around HFT and finally highlights key steps to help participants rise above the complexity and claim alpha that has so recently been eluding them.
Raj Bector, Partner, firstname.lastname@example.org
Anthony Marrato, Consultant, email@example.com
Chris Sparrow, Consultant, firstname.lastname@example.org