market note to clients found that in November last year, off-exchange volume exceeded 50 % on 12 out of the 20 trading days, and on almost all of the trading days in December.
Segmented markets mean there is often less liquidity than an institutional trader might think, posing a challenge for those trying to navigate the execution of their orders. When exploring the growing off-exchange and bilateral segments, Hinmon highlights that this trend is not limited to smaller retail flow.
Quoting data released by Nasdaq’ s Phil Mackintosh, she explains that looking at all stocks in the Russell 3000 Index, very few now have offexchange share below 30 %. In fact, the majority are now seeing off-exchange trading range between
“ What may be important last week is less important this week.”
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