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12 Days of Trading 2024 Day 10: Christmas is a season full of surprises, and the European ETF market is offering its own unexpected gift this year - a shift in trading dynamics that few might have anticipated. For years, the market structure seemed to follow a steady, predictable trend. RFQ platforms dominated trading, holding a commanding 50% share across all products, venues, and mechanisms. But as we unwrapped the final quarter of 2023, the winds of change began to blow. RFQ’s dominance is now contracting, making room for other mechanisms to gain ground. Lit markets, OTC/SIs, and off-book/on-exchange trades are all seeing their share grow. Remarkably, this trend remains true even when excluding the activity on German regional exchanges, suggesting it’s not just a localised phenomenon. What's driving this shift...? To read more click on the link in the comments.

12 Days of Trading 2024 Day 9: In your home, who grumpily collects and disposes of the wrapping paper after all the presents have been opened? I must admit my OCDness does put me in this category. Often I’m shambling through the lounge room like the tail ender in a sack race before the first round of unwrapping is finished. Bah! Humbug! Presents!?! Why can’t we just transfer each other fungible tokens? What goes missing and gets thrown out with the tinsel and the ribbons? Often something small and irreplaceable… until the next Black Friday sale. We can save the arguments about waste and recycling for another post but in amongst the rubbish often there is some valuable content that we wish we hadn’t thrown away. The concept of valuable content amongst the rubbish was a primary driver for the founding of big xyt ten years ago. The trading community needed to know how much of the reported trading volume was addressable – and they still do more than ever. To read more click on the link in the comments.

12 Days of Trading 2024 Day 8: Tradition has it that there are exactly nine magic reindeer. We assume that these reindeer must at some point have been selected from millions of potential reindeer candidates for the particular characteristics that made them ideally suited to pulling a sleigh carrying thousands of tons of presents at close to the speed of light. Also note that each reindeer is different. So it must be the blend of those characteristics that makes them so special. Maybe the combination of a reindeer with big horns and another with a shiny nose helps to keep the sleigh moving in a straight line. Maybe nine reindeer is exactly the right number to balance thrust and drag. Who knows? But given that Santa’s job doesn’t get any easier, he must have to review this particular blend of reindeer on a regular basis to ensure optimal reindeer selection given air traffic conditions and the good:naughty ratio. How on earth does he do this? He must be using Cluster analysis. To read more click on the link in the comments.

12 Days of Trading 2024 Day 7: A common discussion topic at this time of year is the family debate/battle to decide which Christmas movies to watch before the final, final, finale of Gavin & Stacy is broadcast… and what could be more heartwarming than to enjoy the tale of a hairy creature with his old hat, battered suitcase, duffel coat and love of marmalade sandwiches? No, not the new Netflix biopic about Jeremy Corbyn, but rather the Paddington movie(s). Yes, but what is the big xyt link from Paddington to the importance of data analytics? Well funny you should ask as the Paddington producer is none other than CANAL+ Group, spun out of Vivendi to list on the LSEG (London Stock Exchange Group) only just yesterday. With continued press observation that UK companies are looking to the US to list, this is a welcome boost in the ongoing campaign to Make Europe(an Equity markets) Great Again. It also allows us to showcase another example of our intraday analytics generated in real time and in this case showing the intraday market share of CANAL+ as it trades for the first time on the LSE (surprised the ISIN has a French rather than Peruvian prefix). To read more click on the link in the comments.

12 Days of Trading 2024 Day 6 You really should sell, you’d better not buy, You ought to be short, I’m telling you why.  VWAP Crossing’s coming to town. He’s trading a list, she’s rolling the dice, They’ll spread it out so the impact is nice.  VWAP Crossing’s coming to town. They see the prices creeping, they’ve got a data lake. They've done the calculations - they’d better be right for goodness sake. Is the benchmark even right for the fundholders’ sake?  Never mind that, get the order despatched. Oh no, which provider is better at a trajectory match? VWAP Crossing’s coming to town! When new mechanisms are introduced it is vitally important that the community has the transparency to observe any volume trends and the most relevant market quality metrics to assess the attractiveness, benefits and success of the new venue. To read more click on the link in the comments.

12 Days of Trading 2024 Day 5: As the holiday season lights up the markets, there’s one star on the ETF tree that deserves special attention: the European Best Bid and Offer (EBBO). For investors navigating the thousands of ETF listings across Europe, EBBO is like the guiding star that leads to smarter decisions and potentially better outcomes. When selecting or trading ETFs, spreads are the gift that keeps on giving - a key indicator of market quality and execution costs. But unwrapping this data isn’t always straightforward. Spreads can vary significantly across venues, shifting throughout the trading day like snowflakes in the wind. Finding the venue and listing with the tightest spread can feel like searching for the perfect present amid a mountain of choices. Here’s where the EBBO steps in to deliver a festive surprise. To read more, click on the link in the comments.

12 Days of Trading 2024 Day 4: These days it seems to get harder and harder to pick a really new and exciting Christmas present for your parents, spouse, friends and of course the kids. They’ve all got everything already and if you ask them they just say “Dunno really!”. The elves have to concentrate really hard to come up with something different and unique, so that Santa can spring a stirring stocking surprise. Well this year, the 12 Days team has reached deep into Santa’s sack, had a rummage, and found something really unique. Courtesy of our partners at the JSE we present a highly insightful dataset that only a trading venue can produce. This is golden source data that emanates directly from an exchange matching engine and in this case is provided by the JSE Trade Explorer service, which is powered by big xyt. To read more, click on the link in the comments.

A quick reminder to vote! We have been shortlisted in the TradingTech Insight, from A-Team Group Insight Awards Europe 2025 for Best Transaction Cost Analysis (TCA) Tool. Voting will close at 5pm (UK) this Friday 13th December 2024. We appreciate your support! https://lnkd.in/eHVbY2xW

12 Days of Trading 2024 Day 3: As the holidays draw near, the spirit of giving has reached the trading world, bringing with it a shiny new offering: the rise of Midpoint execution innovation. Just this week, Xetra added its Midpoint service to the mix, highlighting how this trading feature is becoming the must-have gift for investors and brokers alike... 'Twas the week before Christmas, and all through the market, The traders were stirring, no one could park it. For on Monday morning, with a festive cheer, Xetra launched Midpoint - what a way to end the year! With innovation afoot, investors delight, More choices for trading, a dazzling sight. Brokers scratching their heads, “How do we evaluate, This new mechanism, and its impact on our fate?” Reliable data is the holiday star, Guiding decisions both near and far. Analytics unwrapped, no delays in sight, Clients glimpse liquidity, shining so bright. So let’s toast to the season and this festive advance, Midpoint Execution’s a gift, a progressive stance. For Europe’s trading landscape, it’s a notable tweak, Innovation unwrapped - see you next week! To read the full post, click on the link in the comments.

12 Days of Trading 2024 Day 2: In present delivery, timing is everything. Santa has to stay exactly on schedule. Too fast and you risk a Christmas Eve delivery or even being spotted. Too slow and the children are already awake and the sprouts are on. Or worst of all, there are a few presents left in the sleigh on Boxing Day. Taking into account timezones and population densities, windspeed, air traffic conditions and the dispersion of nice and naughty children (and grown ups), it’s a complicated business. These factors are highly dynamic, changing in real time and they affect one another. Sound familiar? Well it’s just the same as guiding the execution of a big order through the trading day to match liquidity. Predicting the volume curve depends on detailed analysis of the factors affecting the distribution of liquidity over time with the chief event being the Closing Auction. To read more, click on the link in the comments...