360 of trading in asia pacific a buy side survey · 2017-07-14 · trading volume compared with...

360 of Trading in Asia Pacific –

A Buy Side Survey

Survey Background

•17 Regional Buyside Surveyed

•14 trade Asia Pacific and 3 trade Australia only

Trading Volume Compared with Last Year

26.7%

60.0%

13.3%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

Increased

Decreased

More or less thesame

How many emails do you get a day?

43.8%

18.8%

12.5%

25.0%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0%

<100

100-200

200-300

300-400

400+

What percentage of your day do you actually spend

trading?

20.0%

40.0%

26.7%

13.3%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

0-25% 26-50% 51%-75% 76%- 100%

The balance of time spend on

10.0%

20.0%

10.0%

50.0%

10.0%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

Client/marketing

Internal meetings

Market structure

Maintaining brokerrelationships

Emails

Why has your execution style changed? (Accept Multiple Answers)

57.1%

28.6%

0.0%

71.4%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

Market volume Concern overpredatory HFT

Change in brokerpanel construction

Better tools

How has execution style changed ?

(Accept Multiple Answers)

10.0%

80.0%

50.0%

10.0%

20.0%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

80.0%

90.0%

Blocks trading facilities(e.g. Liquidnet)

Algorithms Broker darkpools Broker facilitation Sales trader

In the past 12 months what percentage of your

orders were DMA/Algo?

58.3%

25.0%

0.0%

16.7%

0-25%

26-50%

51%-75%

76%- 100%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

Do you see buy-side firms developing their own algos

rather than relying on brokers to do it for them?

31.3%

68.7%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0%

Yes

No

How do you decide which broker to place your orders with?

(Top 3)

23.5%

52.9%

35.3%

11.8%

47.1%

41.2%

41.2%

11.8%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

Access to corporate deals

Research panel/PM directed

Dark pool access

Capital commitment

Electronic execution suite

Sales trading ability- the ability for a broker to seek liquidity

Reactive to natural blocks

Other services- OMS/EMS, data, TCA

What percentage of IOIs do you think are

genuine?

33.3%

58.3%

8.3%

0.0%

0-25%

26-50%

51%-75%

76%- 100%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%

Do you think dark pools diminish price discovery in

the Central Limit order Book?

38.5%

61.5% Yes No

No

Yes

Will you directly benefit from more lit trading

venues?

30.8%

69.2% Yes No

No

YES

100% of respondents said using TCA.

You are using?

15.4%

46.2%

30.7%

7.7%

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%

Other Third Party

A combination of both Proprietary and Broker

Proprietary

Provided by broker

How have regulatory changes affected you (e.g. short

selling reporting, best execution)?

53.8%

15.4%

15.4%

0.0%

15.4%

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

Hasn’t affected me

I spend sometime on this- Ithink time well

spent

I spend sometime on this-

find tooonerous

I spend a lot oftime on this- Ithink time well

spent

I spend a lot oftime on this-

find tooonerous

What is the one thing the sell side can

collectively improve? •Manual execution quality. It's amazing how many traders at large sell-side institutions do not know how intelligently execute an order.

•Consistent (good) client service. Keeping communications relevant.

•Please do not come up with so many independent dark pools. Better to work together and form a few big ones with critical masses

•Quality of client specific actionable IOI's

•Use less algos when executing orders

•IOIs

•Sell side should do more training of their staff. They lack knowledge of market structure and what affects sales traders as a job.

•Value added content - less "spam"