The traditional relationship between the buy side and the sell side is in flux. With factors such as the unbundling of research and execution dollars, the democratization of equities trading technology offerings, and new and more dynamic regulatory requirements, the usual paradigm between brokers and clients has been drastically changed. Brokers’ clients have evolving needs and they face shifting challenges, which necessitates a corresponding change in how the sell side serves them. So, in this new landscape, what traits does the buy side look for in their brokers, and how do brokers differentiate themselves and demonstrate unique value?
Clearpool was awarded Best Algorithmic Trading Provider at the 17th annual Waters Rankings that took place at the Manhattan Penthouse on July 10, 2019. Accepting the award at the ceremony, Brian Schaeffer, Clearpool's Co-Founder and President, said "We are humbled and honored to receive this recognition. This is a testament to all the hard work the dedicated team at Clearpool has put in to bring our truly unique trading solutions to market."
As a college student, I have found that undergraduate internships often serve as the stepping stone to a successful career. Every student dedicates lots of time to perfecting their resumes and sharpening their interview skills in order to land their ideal internship. Getting hired as an intern at a firm that you admire or in a role that fits your desired career path is an exciting feeling, and you are eager to expand your network, learn from your mentors, and contribute value to your team.
On April 25th, 2019, Clearpool was named “Best Company” in the Algorithmic Trading Category as part of the 2019 Markets Media Choice Awards. Accepting the award on behalf of Clearpool, founders Joe Wald, Brian Schaeffer and Ray Ross are excited to celebrate such an honor, noting that Clearpool wouldn’t be what it is today without the dedication of the broader team.
If you remember GI Joe, you may also recall every episode ending with GI Joe saying, “Knowing is half the battle.” The idea put forth was that “knowing” was the impetus of change. Change that would lead to a better outcome because of the lesson that was learned.
The rise of electronic and algorithmic trading has irrevocably changed how the financial markets operate. Equity markets have been known to be almost entirely electronic since 2015. Moreover, according to Greenwich Associates, over 90% of equity flows are executed electronically in liquid, developed markets like the U.S. It’s no secret that floor trading has dwindled. Just take a look at the floor of the New York Stock Exchange. When I was a specialist, there were thousands of traders and market makers on the floor of the exchange, but in the past decade or so that number has dropped to only a few hundred.
The definition of insanity is doing the same thing over and over again and expecting a different result.
SEC Rule 10b-18 sets the requirements for corporate stock buybacks and the rule’s “safe harbor,” which allows companies to purchase their shares in the open market without concern that their activities could later be deemed to be manipulative under the law. One of the requirements of the Rule 10b-18 safe harbor is that brokers buying stock for an issuer must buy at a price that is no greater than the higher of the last independent bid price or the last sale price.
These words are attributed to the renowned management guru, Peter Drucker who revolutionized the way people thought about running businesses. Although there is some debate as to whether he actually uttered these words, this maxim has become a part of corporate philosophy for businesses as diverse as automobile manufacturers and advertising companies.
In our initial observation of the Tick Size Pilot*, we found a shift in liquidity from off-exchange venues to exchanges in G3 and a shift from maker/taker to inverted exchanges across all test groups. However, we did not observe the same increase in impact costs that other studies found. We concluded that the pilot may be showing signs of improved liquidity capture for institutional investors and we committed to measure and report the results of the pilot in the future.