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"