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“ Our emerging markets franchise now has the same market share rank as our developed markets franchise , which is a huge win for us .”
DAVID CORNISH , MD , CO-HEAD OF EMEA ELECTRONIC TRADING , HEAD OF EMEA QUANTITATIVE SERVICES DISTRIBUTION , GOLDMAN SACHS
In a typical environment , ELPs typically quote three or four times larger on the touch side compared to the available liquidity in the lit market . GSET noticed that despite ELP touch size quotes slightly decreasing at the peak of the volatility , that decline was minor compared to the sharp decrease in available touch liquidity in the lit market .
That resulted in touch liquidity quoted by the ELPs being five or six times larger than what was available on the lit touch . Harman outlines that having connectivity to and available liquidity in the SOR was crucial during the most intense days of trading , especially as urgency to execute was elevated .
“ In [ times of ] high volatility the bid-offer touch size decreases and that was a big problem for the street ,” Harman explains . “ In the STOXX Europe 600 in the second quarter , for example , it declined from about $ 55,000 on average at the touch , to around $ 18,000 . “ We found that whenever we wanted to use the ELP SIs , we could get more liquidity . For our clients , trying to find that liquidity is all about who has the connectivity , and those important bilateral relationships with the ELP SIs were absolutely key for GSET .”
Additionally , GSET noted an uptick in clients using its stock clustering data service , which is a stock classification data source that feeds information to the platform ’ s
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