Press Releases

Release Date: 14 February 2008
Contact:
Claire Hunte, +44 (0)20 7743 9339, chunte@sifma.org

SIFMA Releases Results of Its First European Equities E-Trading Survey

Liquidity and Technology Access Biggest Hurdles for Buy-Side Trading Desks

London, 14 February 2008 --The Securities Industry and Financial Markets Association (SIFMA) today released its first European Equities e-Trading Survey. The survey confirmed that e-Trading in equities is well established with over half of both buy-side and sell-side respondents executing over 80 percent of their trades electronically. 

However, while e-trading tends to be used to a greater extent for large and mid caps it was less so for small caps and block trades. Voice broking remains the preference for equity derivatives.

The survey conducted between mid-December 2007 and mid-January 2008 canvassed 94 buy-side investors and nine major sell-side firms.

Key drivers behind the growth of e-trading were a desire to reduce costs and achieve greater efficiency.  However, future growth may be hampered on the buy side by a lack of infrastructure/technology and because electronic routing does not access all markets.

The most important factors in choosing an electronic trading platform were identified as access to sources of liquidity and the range of products offered.   While speed of execution emerged as an important concern for buy-side investors this was not picked up by the sell side.

The survey also showed that the ability to trade without moving market price was the leading factor for evaluating dark pools of liquidity. The majority of sell side respondents (78 percent) were positive about the emergence of dark pools. 

The results of the equity trading survey will be discussed at SIFMA e-trading conference in London at Old Billingsgate on 14 February. 

A separate SIFMA survey covering fixed income e-Trading was released on 12 February.

View full equity e-trade survey results at http://www.sifma.org/Conferences/2007/ETrade2008/E-trade08/Concise_SIFMA_Equities_eTrading_Survey_eFINAL.pdf

View full fixed income e-trade survey results at http://www.sifma.org/Conferences/2007/ETrade2008/E-trade08/Concise_SIFMA_eTrading_Fixed_Income_Survey.pdf

 

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The Securities Industry and Financial Markets Association bring together the shared interests of more than 650 securities firms, banks and asset managers. SIFMA's mission is to promote policies and practices that work to expand and perfect markets, foster the development of new products and services and create efficiencies for member firms, while preserving and enhancing the public's trust and confidence in the markets and the industry. SIFMA works to represent its members’ interests locally and globally. It has offices in New York, Washington D.C., and London and its associated firm, the Asia Securities Industry and Financial Markets Association, is based in Hong Kong.