Findings have been released by Liquidnet and Greenwich Associates as a result of their joint study called “Buy-side Voice: The Road Ahead.” Six out of seven buy-side traders from the world’s major market centers agree that they add more value now than they did three years ago. One hundred buy-side traders from the US, Canada, Europe and Asia responded, making this study the first of its kind.
“As our study confirms, the role of the buy-side trader has become increasingly influential across the globe. Liquidnet and Greenwich Associates initiated this study because we felt it was important to understand the buy-side’s view on a global level,” says Seth Merrin, the CEO of Liquidnet. “Our study uncovered some significant geographic differences in opinion around issues like exchange consolidation and electronic trading adoption.”
“The advent of an increasingly sophisticated array of trading tools, combined with a growing focus on best execution, is making the buy-side traders’ job more challenging, fulfilling, and essential,” adds John Feng, a consultant at Greenwich Associates.
In the UK, only 37 percent of respondents agree or strongly agree that there will be a global consolidation of market centers; while 79 percent of US respondents agree or strongly agree. Sixty-seven percent of European traders, and 62 percent of the aggregate respondents, agree or strongly agree that there will be a global consolidation of market centers. These opinions are especially interesting in light of the combinations being discussed between the LSE (London Stock Exchange) and NASDAQ; and Euronext and the NYSE (New York Stock Exchange).
Globally, 64 percent of all respondents agreed or strongly agreed that their firm will increase its reliance on proprietary research. Only 17 percent of all respondents disagreed or strongly disagreed that there would be an increase in their firms’ reliance on proprietary research.