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Friday, April 10, 2009

European buy-side cuts dependence on sales traders – TABB

Twelve percent of European buy-side traders have shifted equities order flow away from brokers’ sales-traders to more self-directed, low-touch execution methods such as direct market access, algorithms and non-displayed multilateral trading facilities, according to a new study from research and consulting firm TABB Group.

According to the study, ‘European Equity Trading 2009: Counterparties, Capital and Control', the shift away from sales traders has taken place amid falling liquidity and a dearth of broker risk capital, as well as a rapidly changing market structure in Europe. The study was based on conversations with 53 buy-side traders dealing European equities in 12 major European Union countries.

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