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“ The natural order flow that we see has allegedly been pre-matched through these venues , but we need to educate regulators that this is simply not the case ,” he said .
However , chairman of the Autorité des Marchés Financiers , Robert Ophéle , specifically targeted Cboe Europe ’ s periodic auction during a keynote address at the conference , stating his concerns about how the industry currently views periodic auctions as lit venues and calling into question the level of transparency these venues provide ( see page 15 ).
“ Periodic auctions are considered to be lit trades , but the level of transparency is indeed very limited . There is practically no pre-trade transparency and no means of fully understanding the order book ,” Ophéle said in his address .
“ The auction duration is unknown and the European Best Bid and Offer ( EBBO ) provides the corridor where all trades are executed , so one could be led to believe that many trades on periodic auctions are actually pre-arranged trades .”
Of those asset managers surveyed , 54 % said they are in favour of implementing a minimum order size in periodic auctions , and 49 % said a minimum pre-matched period based on the liquidity of the instrument should be introduced .
Liquidnet ’ s report also found that 88 % of senior buy-siders believe the shift towards block trading under MiFID II has been a positive outcome of regime . It said that while regulatory focus remains on lit price formation , a key challenge for asset managers is uncovering liquidity given the need to execute in size .
Rebecca Healey , head of market structure for EMEA at Liquidnet and author of the report , explained that under MiFID II the use of various methods of execution for the buy-side , including block trading and periodic auctions venues , is crucial .
“ The argument for trading sub-LIS ( large in scale ) orders in the dark may be just as valid for those asset managers looking to improve execution performance for a portfolio rebalancing or when facilitating institutional crosses ,” Healey commented .
“ The reality is that asset managers need multiple methods of execution available given the variety of orders , differing market conditions , and execution objectives required . Hence the rise in use of periodic auctions and SIs as alternative methods of sourcing liquidity .”
Deutsche Asset Management ’ s global head of equity trading and buy-side industry veteran Mike Bellaro is leaving the firm after 30 years .
Bellaro is set to depart in the summer and Deutsche Asset Management will find his replacement in due course , a spokesperson confirmed .
The former chief information officer at Cowen in New York will relocate to London for a new role with the London Stock Exchange Group .
Ann Neidenbach joined the exchange operator in mid-June as chief information officer for shared services .
The first female president has been appointed at the New York Stock Exchange ( NYSE ).
Stacey Cunningham took on the role in May following the departure of Thomas Farley . Cunningham has been chief operating officer at NYSE since June 2015 , and has formerly held various senior positions at the exchange .
Peter Thompson has been hired as a managing director and head of Goldman Sachs Asset Management ’ s European ETF business in London .
Thompson rejoins Goldman from Source ETF , which was acquired by Invesco in 2017 to sit alongside its PowerShares business , where he was formerly interim chief executive and founder .
Barclays has appointed Matt Pecot from Credit Suisse as head of its equities business in Asia Pacific .
Pecot will oversee Barclays ’ equities sales and trading activities in the APAC region which focuses on derivatives after the shuttering of its cash equities business in 2016 .
Issue 56 // TheTradeNews . com // 7