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​​To finish off the week, the 12 Days of Trading 2022 continues its longitudinal leaping, this time southwards across the Alps from Prague to Bergamo, famous for its Elfredo pasta.  Today’s festive topic is deer to our hearts; latency. Given the proposed changes mentioned this week, we take a look at how DVC and SI activity has changed over time, which may help us anticipate what to expect next. But hold on, it just occurred to us that this actually has a lot in common with a practice in equity markets. Managing index constituents during a rebalance with a target benchmark of the Closing Price. 

Of course, Santa has plenty of friends and it looks like some people in the market have some pals in Prague as the dark caps are looking to be relaxed (if not abolished) under the Czech presidency. The restrictions around Systematic Internaliser trading could also be eased. Given the proposed changes mentioned this week, we take a look at how DVC and SI activity has changed over time, which may help us anticipate what to expect next. But hold on, it just occurred to us that this actually has a lot in common with a practice in equity markets. Managing index constituents during a rebalance with a target benchmark of the Closing Price. 

Father Christmas may not have target benchmarks or KPIs but he does have to manage and deliver all the presents to the correct recipients by the end of the day.  But hold on, it just occurred to us that this actually has a lot in common with a practice in equity markets. Managing index constituents during a rebalance with a target benchmark of the Closing Price. 

At this time of year, we work hard to ensure that we don’t disappoint our friends and relatives on the big day.  We order the food and drink well in advance, we carefully choose the gifts, and we stock up on spare batteries for the remote control.  It’s all about avoiding disappointment by creating certainty.

Over the weekend Santa stopped off in Qatar to watch the World Cup quarter finals (even though it was really a business trip, it was also a good excuse for a jolly).  Like the rest of us, he was drawn into the drama as penalties proved to be critical in three out of four matches.

If there’s one thing Father Christmas takes into consideration when it comes to presents, it’s fairness. Mrs Claus insists that siblings should always have the same amount of money spent on them - but what if one gift was discounted on Black Friday in Lapland? Is it price or value that matters? 

As we gently ease into the festive season, the big xyt team is pleased to bring you Season 5 of the ‘The 12 Days of Trading’, a light-hearted look at some of the highlights of the trading year and its curiosities. This year, just like Santa, we begin our quest in the antipodes with a quick look at fragmentation in the region.