[ B U Y- S I D E C O V E R | M E L I S S A H I N M O N ]
40 %-50 % regardless of stock price or market cap.
When asked what the institutional buy-side can do to navigate this increasingly complex and shrouded landscape, Hinmon confirms that her team rely heavily on their transaction cost analysis( TCA) both internally and externally.
The situation is likely only set to be exacerbated by recent developments in the US that will see equities move to a 24 hour, five day a week model. There are several platform providers such as OTC Markets and Blue Ocean Technologies offering after hours
“ If there ' s been one thing I ' ve learnt, it is that markets recover. They are living, breathing creatures.”
US trading but in recent months the US market has also seen moves from central venues such as NYSE, Cboe, and Nasdaq, all looking to expand some or all of their equities books onto an extended trading hours model.
While the moves have glaring positives such as increased flexibility on trading and greater exposure to other regions around the world, an extended trading period for equities also poses some questions around transparency, operations and retail. Questions that those sitting in Hinmon’ s seat must now begin to assess as the markets evolve further.
“ What ' s that [ 24 / 5 equities trading ] going to look like?” asks Hinmon.“ I can ' t imagine institutions are going to be playing that. What ' s the advantages for retail playing that? Is it going to cause additional retail fragmentation. Is retail participation going to be elevated?”
Other market structure developments Hinmon is keeping tabs on include the potential for the new administration to do away with the order protection rule( OPR), the expansion of institutional cryptocurrency trading, and whether the US Securities and Exchange Commission( SEC) is going to approve exemptive relief for ETF mutual fund classes.
While there are many potential plates spinning, Hinmon explains that she and many like her are for the time being waiting for the dust to settle following the election in November and subsequent change in administration in the US that took place at the start of this year.
Hinmon, like many in her trade, has learnt that success in this industry follows adaptability. While market structure and regulatory change in the US is currently somewhat dormant, it’ s more than likely that with the change of administration witnessed at the start of this year, there is scope for a wide breadth of changes to be made that will echo through North America and into the markets globally. For those less clued up than Hinmon, it’ ll likely be a bumpy ride.
20 // TheTRADE // Q1 2025