Thursday, 18 December 2014
Last updated 14 hours ago
Aug 30 2013 | 10:15am ET
The more shares a hedge fund trades, the more interested it is in how those shares are traded, a new survey shows.
Hedge funds that trade more than a million shares a day want more information about the algorithms used by their brokers, according to the Tabb Group poll. Some 79% of such firms question their brokers about those algorithms, compared to just half of hedge funds trading less.
Three-quarters of the larger hedge funds find the information provided in response to their queries helpful. Just 36% of the smaller hedge funds concurred.
"Given the myriad idiosyncrasies from one broker's algo to the next, the task of understanding the core logic and capabilities of a given algo has never been more challenging," Adam Sussman and Colby Jenkins, who wrote the Tabb report, said.
Tabb also polled hedge funds about their favored algorithm providers, finding Credit Suisse, Morgan Stanley, Goldman Sachs, Bank of America Merrill Lynch and JPMorgan Chase top the list.
Dec 1 2014 | 10:21am ET
As 2014 winds down, Northern Trust Hedge Fund Services executives took some time to share their outlook on trends facing the industry in 2015. Read more…
Jeff Sprecher was simply looking for a platform to trade energies when launching ICE 14 years ago but it has grown to reach the pinnacle of both the listed futures and equities world.