Waking up to an equity market that will never sleep скачать в хорошем качестве

Waking up to an equity market that will never sleep

A Future of Finance Webinar The main driver of the increase in out-of-hours trading of US equities in recent years has been the desire of retail brokerage firms and their clients, especially in Asia but also in Europe, to trade US equities before the US markets open and after they close. In this webinar, sponsored by Blue Ocean Technologies, we asked four experts why out-of-hours trading is happening, who is taking part, what their services choices are, how post-trade processing works, and whether the US equity markets are now in the early stages of a transition to genuinely round-the-clock trading. Why it is happening How do the service providers such as Blue Ocean get paid (e.g., transaction fees, market data sales)? Out of hours trading has increased significantly in recent years. Why is that? What does the equity trading data reported to FINRA tell us about what is happening with out-of-hours trading (especially when trades are always reported the following day)? What does Blue Ocean’s data tell us? What are the benefits (e.g., getting ahead of the market on news released after closing, capturing market price falls) and risks (e.g., lack of liquidity, lack of volume, wider spreads, poorer prices, greater volatility, limits on types of orders to, say, limit orders as at Blue Ocean) of out of hours trading? There are 8,500 stocks listed in the US NMS. Is trading activity focused on a small range of stocks or a wide range of stocks? Who is taking part Who is doing out-of-hours trading and why (i.e., is it driven mainly by retail or by institutional investors, or prop traders and hedge funds, or family offices – and how does their behaviour differ)? Are some people specialising in out of hours trading? Market participants can trade before markets open and after markets close. Where are you seeing activity concentrate and why? Does out of hours trading reflect mere geography (i.e., Asians and Europeans are active before Americans) or does it reflect a change in trading strategies? The infrastructure and competition To what extent are brokers a constraint on out of hours activity (e.g., not all offer a service)? Are there active market makers in out of hours trading? Blue Ocean does not have out of hours trading to itself. NASDAQ offers out of hours trading between 4.00 and 09.30 am and 4.00 and 8.00 pm; NYSE Arqa is extending weekday trading to 22 hours between 1.30 am and 11.30 pm EST; and the SEC licensed the proposed 24X National Exchange. On what criteria does competition take place (e.g., opening hours, transaction fees)? How do you guarantee constant service availability for brokers and traders (i.e., in terms of prices, access, connectivity, staff available to fix issues, resilience and business continuity)? How are trades (a) cleared (e.g., via a Blue Ocean clearing firm with access to NSCC) and (b) settled (e.g., the custodian bank of the broker with access to DTCC)? The future Trading at Blue Ocean is presently 8/5 – why not 24/7? Do the actions of the Trump administration threaten to reduce global interest in trading US equities? Do developments in the cryptocurrency and Decentralised Finance (DefI) markets, such as decentralised exchanges (DEXs) and Automated Market Makers (AMMs), presage a different future for out of hours securities trading – and what do your broker-dealing clients make of the prospect? Who is on the panel? Brian Hyndman, CEO at Blue Ocean Technologies John Willock, Head of Strategy and Market Data at Blue Ocean Technologies Steve Bombardiere – Managing Director, Head of Equity Trading at Mirae Asset Securities (USA) Inc. Rachel Bradford – Head of Trading & Execution, FUTU US Inc. Moderated by Dominic Hobson, Co-Founder at Future of Finance