Views

As the UK gears up for another general election on July 4th, it’s worth taking a look at what this might mean for liquidity based on the patterns observed following the 2019 election. 

Last year we observed how mid spread executions at the time of an RFQ execution did not tell the whole story about best price during a longer ‘execution window’. Using the xyt lab we applied the same logic to other mechanisms to establish if there are other questions traders should be asking when performing execution analysis to optimise their transaction costs.

Market participants can use a clever technique to avoid arguments over equity and impartiality by applying a well recognised and altruistic benchmark called the Value Weighted Average Price (VWAP).

In equity markets, the task of identifying the difference between addressable and accessible liquidity, and what isn’t, is becoming an increasingly significant challenge.