By Mark Montgomery, Strategy & Business Development Mathematics. It’s not complicated, surely? The Ancient Greeks drew lots of models in the sand and we have been developing them ever since. Plus, we’ve built tools to prevent our brains having to work too hard. The evolution of these tools has accelerated...
The markets responded with the usual enthusiasm for major news yesterday with the announcement of Jenny Chen joining our team to extend our reach in the US market. In other news, we saw a likely result in the US presidential election and word of a vaccine. As with Q1, the...
by Khalil Dayri, big xyt Understanding the nature of liquidity We know that trading behaviour, microstructure and liquidity all vary significantly between venues and across individual stocks. Understanding these differences has become a very important prerequisite to any market participant. Armed with this knowledge, traders can substantially reduce their execution costs,...
by Mark Montgomery, big xyt Day 12 – Rolls-Royce at a discount? Never! It seems like a good time to leave the days of isolation behind us but fear not, our observations will continue this week. Following on from our previous post, we promised to take a closer look at one...
by Mark Montgomery, big xyt Day 11 – SpaceX for Stocks Some of you may have been straining your eyes looking at the night sky during the recent SpaceX launch. The image above isn't a photographic negative image of heavenly bodies, it is actually a scatterplot of multiple European stocks. The...
by Mark Montgomery, big xyt Day 10 – Auction Action Turnover of equities including ETFs in closing auctions reached record levels on Friday. The volumes were higher than any other day during the past 12 months (including all expiry dates and rebalancing dates). 40B€ total closing notional (incl. ETFs) was reported...
by Mark Montgomery, big xyt Day 9 – ETFs, Expect to Trade for Free? We saw how volatility during February and March resulted in an unsurprising widening of equity spreads. It sparked our curiosity to see how ETFs were affected during the same period. Market makers in ETFs base their pricing...
by Mark Montgomery, big xyt Day 6 – How to Trade on The Stop Market Update: For four hours on Tuesday liquidity dried up on the primary market in Germany (plus some other XETRA powered markets) due to a technical outage. Not for the first time we observed the importance of the...
by Mark Montgomery, big xyt Day 5 – Attack of the CLOBs Update: Following our first post in this series, a number of people have asked if the trend we observed has continued over subsequent days. The ingredients are consistent - uncertainty, volatile markets, and unpredictable liquidity leading to opportunity cost with other...
