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TABB Group in the News

FLASH FRIDAY: Turning the Spotlight On Dark Pools

January 3, 2020

(Interestingly, dark pool trading volume dropped a stunning 13 percent in May after a 1 percent drop in April, according to a study from the TABB Group, showing perhaps the “Michael Lewis Effect” on the markets. All eyes are on the June numbers, due out in early this month, which may show the impact the Barclays case could have on dark pool activity.) As with the HFT frenzy, the past several weeks have seen dark pools become the subject of announced regulatory proposals, revealing data dumps and shocking enforcement actions. Underpinning this all, however, is a question of whether dark pools-secretive and murky by their very nature-still add value to the markets, or are now simply a venue that allows abuse to go on when the lights go out. - Traders Magazine

The Making of the World’s Greatest Investor

November 2, 2019

Quantitative investors are the market's largest players, controlling 31% of stock trading, according to the Tabb Group, a research firm. - Wall Street Journal

In World's Longest Trading Day, Everyone Waits for the Close

June 26, 2019

The fact that closing auctions make up a larger percentage of volumes in Europe than in America might come as a surprise, given that passive products account for about 15% of investment assets in the former, far lower than the 37% across the Atlantic, according to Moody’s Investors Services.


That may be partly because in the U.S., the closing auction coincides with the end of continuous trading, offering other venues to trade around the final price, whereas in Europe, it takes place afterwards, said Tim Cave, an analyst at Tabb Group, a research firm specializing in capital markets. - Bloomberg News

Smart Contracts (SCs) Have Been Talked About, Tested, Even Hyped, Says TABB Group, But Will They Become Commonplace?

June 11, 2019

According to new TABB Group research, “Getting Smart about Smart Contracts in Rates,” SCs’ potential for making the rates swaps business more efficient looks very attractive, but these contracts and the processing arrangements they require imply changes in almost every aspect of the swaps business, for just about every kind of participant.  “In other words,” says George Bollenbacher, TABB head of fixed income research who wrote the report, ““we need to get a lot smarter about SCs in the rates swap market before we can go much further.” - Exchange News Direct

Tabb Group Says Fixed-Income Markets Less Liquid Than 10 Years Ago

February 28, 2018

"Fixed-income markets are approaching a critical stage in their evolution," said Anthony Perrotta, chief executive officer of the Tabb Group, at the opening of the Fixed Income 2018 Evolutionary Tipping Point conference in New York recently. He said the fixed-income markets are besieged on all sides ...

Source: Forbes

More Than 1 Million People Sign up for Early Access to Robinhood's new Crypto Trading Service

January 30, 2018

"Despite the downturn in price and the fraud in Japan, the interest in the cryptospace remains very high," said Tom Lehrkinder, senior analyst at consulting firm Tabb Group. "More and more [futures commission merchants] are starting to execute and settle the bitcoin futures contracts." Bitcoin's price ...

Source: CNBC

Need a job? Why Artificial Intelligence Will Help Human Workers, not Hurt Them

January 18, 2018

The market for alternative data was about $200 million in 2016 and is expected to shoot to more than twice that by 2020, according to research firm Tabb Group. Alternative data refers to data outside of mainstream information, such as government statistics, stock prices, company financial reports and ...

Source: Newsweek

Mifid II and Dark Pools: What are Regulators up to?

January 9, 2018

Tim Cave, an analyst at Tabb Group in London, estimates that exchanges have increased their market share by a couple of percentage points since the broader Mifid II rules were introduced last week. Waivers in the rules which allow unlimited trading in dark pools for stock orders above a certain size ...

Source: Financial Times

Bitcoin Price Check: As JPMorgan Analyst Praises Bitcoin, When Will The Bubble Burst?

December 6, 2017

TABB Group’s Thomas Lehrkinder expects the Bitcoin market to grow past $300 billion, and he is keeping a close eye on open interest figures posted by the CBOE, CMEGroup as well as NASDAQ and Cantor Fitzgerald, both of whom recently entered the Bitcoin derivatives exchange markets.

Source: ValueWalk

BlackRock and Vanguard Are Less Than a Decade Away From Managing $20 Trillion

December 4, 2017

Another concern is that without the prospect of being part of an index, fewer small or mid-sized companies have an incentive to go public, according to Larry Tabb, founder of Tabb Group LLC, a New York-based firm that analyzes the structure of financial markets. That’s because their stock risks underperforming without the inclusion in an index or an ETF, he said. Benchmarks are governed by rules or a methodology for selection and some require that a security has a certain size or liquidity for inclusion.

Source: Bloomberg

Making Millions From the Data Hidden in Plain Sight

November 28, 2017

Alternative data is still a niche research tool among hedge funds, but it's growing in popularity. In 2016, alternative data generated about $200 million in spending, according to research from the Tabb Group. That figure is expected to double over the next five years.

Source: CNBC

BlackRock, ICE and Pimco Among First SEC Fixed Income Committee Members

November 13, 2017

MarketAxess, Citigroup, TABB Group and the Financial Industry Regualtory Authority also have representatives on the committee, alongside former SEC chairman, Elisse Walter.

Source: The Trade

Spot Trading Cuts Headcount Amid Industry Troubles

November 13, 2017

"It's been a rough time for automated trading firms," said industry analyst Larry Tabb, founder of Tabb Group, in an interview earlier this year. "The two aspects of the business that drive profits are volatility and volume. Volatility is at 30-year lows and volume continues to stay near post-crisis lows."

U.S. stock option trading has been particularly hard hit, as evidenced by the exit of other trading firms from that market this year, including Interactive Brokers Group and Goldman Sachs Group. Profits in that arena have dropped from $7.2 billion in 2010 to $850 million this year, according to estimates from New York-based Tabb Group.

Source: Crain's Chicago Business 

Gaps Remain in Preparation for MiFID II, Money Managers Acknowledge

October 20, 2017

"The gaps (in preparation) really stood out on research and unbundling," said Valerie Bogard, equity analyst at TABB and co-author of the report. "Europeans have not done as much client talk, but the nature of the talks in the EU and in the U.S. are very different. The U.S. managers have had more ad hoc discussions with their clients. European managers have more stuff they have to cover and that will require an overhaul of their systems. All of that takes more effort to coordinate. They just want to make sure they're notifying clients in an organized way."

Source: Pensions&Investments 

Could the 1987 Stock Market Crash Happen Again?

October 19, 2017

"The industry has come an awfully long way from '87," said Larry Tabb, who heads capital markets advisory firm TABB Group. "The regulators have done a good job at implementing rules that help the markets ensure that they stay stable at a time when there is not a reason for them not to be stable."

Source: Yahoo Finance

Has Wall Street Employed Enough Tech to Protect Against Another Black Monday?

October 19, 2017

While circuit breakers have had limited crashes in recent years, said Larry Tabb, founder of investment research and advisory firm Tabb Group, we could still have another meltdown. "That market meltdown would not necessarily be technically driven or market-structure driven as it would be supply demand driven, which is appropriate," he said. 


The emergence of more than a dozen exchanges and more than 30 dark pools or alternative trading systems could also contribute to volatility. Tabb suggested. "The exchange fabric is much more--some people would call fragmented others would call competitive," he said. The wide distribution of trades across so many exchanges make it "easier to have these mini crashes or flash crashes," he cautioned.

Source: TheStreet

SEC Names JPMorgan Exec Redfearn as Trading and Markets Director

October 18, 2017

Larry Tabb, founder of Tabb Research, a capital markets consultancy said Mr Redfearn is “well-respected” with “an even personality.” “That said, he has been fighting pretty vigorously for greater oversight of exchanges… and an active challenger of exchange market data fees,” Mr Tabb said, referring to the hot-button issue of what exchanges charge brokers for market data. “It will be interesting to see how or if he advances this platform as he moves from a broker perspective to a much wider markets perspective.”

Source: Financial Times 

Are Former Bank Executives Mnuchin And Cohn Encroaching On Regulator Turf?

October 16, 2017

“I don’t believe regulators (such as the SEC and CFTC) report into the US Treasury,” noted market structure expert Larry Tabb, saying that the only regulator to technically report into Treasury is the Office of the Comptroller of the Currency (OCC). He said it is “very rare to see something this all-encompassing” from the Treasury Department, noting the last time Treasury opined into the SEC’s regulatory domain occurred when the Obama administration moved to implement the fiduciary rule.

Source: Valuewalk

High-frequency traders adjust to overcapacity and leaner times

October 9, 2017

“The market continues at low volatility and fairly low volumes and the industry is trying to do its best,” says Larry Tabb, founder of the Tabb Group, a capital markets consultancy. “There is still cost cutting going on and consolidation happening.”

Source: Financial Times

Human Traders Back in Vogue Thanks to Mifid II

October 9, 2017

Tim Cave, an analyst at Tabb Group, a consultancy, said he expects an increase in trades of large blocks of shares to be accompanied by greater demand for sales traders, because of their expertise and knowledge of the markets.

One executive said it can be hard to find sales traders in the current market. "You don't have a lot of new talent coming through in that area because people aren't trained to be sales traders," the person said. He added that they tend to be in their 30s and 40s rather than their 20s and 30s. At the same time, the new rules intensify the pressure on traders at brokers and fund managers to secure the best deal for their clients, known as best execution. The updated best execution requirements mean traders must take “all sufficient” rather than “all reasonable” steps to obtain the best result.


Source: Financial Times 

Mifid II’s Impact on Fixed-Income Transparency Will be Profound

October 8, 2017

Larry Tabb, founder of Tabb Group, a securities industry consultancy, points out that it would be premature to predict that Mifid II will deliver the same benefits as Trace. For one thing, it requires pre-trade price publication, which Trace does not.

Source: Financial Times 

Are Chicago Trading Firms Losing out in Consolidation?

October 2, 2017

Firms in Chicago were some of the first to employ high-speed trading strategies to capitalize on pricing discrepancies in the markets. But with volatility in the markets drying up in recent years and spreads tightening, the local players may start to be at a disadvantage, according to Larry Tabb, founder of industry consultant Tabb Group. Future trading profits may favor those firms that are closer—both geographically and in their relationships—to the banks that place initial trades.

Mifid II is Europe’s Chance to Recoup Ground Lost to the US

September 27, 2017

An opportunity for Europe to regain ground lost to the US as the gold standard for trading and market oversight is fast approaching. Mifid II, the most comprehensive regulatory framework ever to hit securities markets, takes effect across Europe in just over 100 days, and is highly likely to create momentum for market structure changes globally. Begrudgingly, US markets will probably need to adapt in response.

As Volatility Rose, Trading Volume Actually Declined

September 24, 2017

“Amid one of the wildest years in geopolitical history, when stock market volatility is knuckle-dragging at all-time lows, a Tabb Group report notes a three-year low in equity trading volume.”

Value Walk

Edgar Hack Calls Dramatic Attention to Dangers of Tech and Transparency

September 22, 2017

“Edgar has "all sorts of stuff that could possibly move the market," said Larry Tabb, founder and research chairman of Tabb Group, a research firm that specializes in capital markets. "If you can break in, there's a trove of market-influencing information that you can find and mine. There's profit in there."

Bloomberg News

MiFID’s Controversial Dark-Trade Workaround Has Some Crying Foul

September 22, 2017

“Broker-crossing networks will be banned under MiFID II, forcing banks to find alternatives. Once MiFID kicks in, three-quarters of investment firms expect to trade via SIs, “albeit in a tentative fashion,” according to a Tabb Group LLC survey released in August. Bloomberg LP, parent of Bloomberg News, operates trading platforms.”

Bloomberg News

SEC Hack Threatens a Bedrock of U.S. Capitalism: Transparency

September 22, 2017

“Edgar has “all sorts of stuff that could possibly move the market,” said Larry Tabb, founder and research chairman of Tabb Group LLC, a research firm that specializes in capital markets. “If you can break in, there’s a trove of market-influencing information that you can find and mine. There’s profit in there.”

Bloomberg News

Three challenges facing investors ahead of Mifid II

August 24, 2017

Tim Cave, an analyst at Tabb Group, a capital markets consultancy, estimates that up to 20 operators will have the status in January. Goldman Sachs, JPMorgan, Morgan Stanley, Mizuho and UBS, as well as proprietary traders Sun Trading and Virtu Financial, are expected to be among them.

Source: Financial Times

A cure for Wall Street’s MiFID migraine is said in works at SEC

August 23, 2017

"The brokers and investment managers are all down in Washington saying, 'hey, look we need a solution,' " said Larry Tabb, whose New York-based research firm — Tabb Group — recently expanded its London office in preparation for the new rules. SEC staff would be "actually hurting U.S. banks and firms if they don't create a carve-out policy," he said.


Source: Pensions & Investments

Adam Smith Explains High Frequency Trading To Us All

August 15, 2017

According to Tabb Group, US market makers reported $1.1 billion in revenue in 2016, compared with $7.2 billion in 2009.

Source: Forbes

Critics think IEX’s Yale buds are giving the exchange a boost

August 13, 2017

“Rife with misinformation and incorrect comparisons,” wrote analyst Larry Tabb, founder and research chairman of The Tabb Group, in a blog on his company Web site.

“The authors’ view that routing orders to exchanges offering rebates provides investors with poor execution quality is based on inaccurate examples and incomplete analysis,” he added.

Source: New York Post



MiFID II’s SI regime to herald new age of fragmentation

August 9, 2017

A report by TABB Group published this month estimated the up to 20 SI operators for equity products alone will be registered come the January deadline, although only a handful will offer competitive prices.

Source: The Trade News

MiFID II may end up aiding active management firms

August 7, 2017

"Added Tim Cave, equity research analyst, TABB Group, London, 'You'll see a genuinely competitive market for research. It'll be a lot more competitive, and that will lower costs. Fundamentally, there'll be more insight into costs and fees. That sort of reinforces the best-in-breed categories in active management. … Another benefit for active management will come from rules that will bring better execution quality. That hopefully will lead to a flight to quality in that regard.'"

Source: Pensions & Investments

SEC moves closer to taming 'Wild West' of digital currencies

July 26, 2017

"As the regulation of cryptocurrencies progresses, that's actually a good thing for the currencies because they won't be seen as the Wild West," said Monica Summerville, senior analyst in fintech at Tabb, a capital markets research and consulting firm.

Source: CNBC

Trading firm buckles under high costs

July 10, 2017

“It’s been a rough time for automated trading firms”, said industry analyst Larry Tabb. “The two aspects of business that drive profits are volatility and volume. Volatility is at 30- year lows and volume continues to stay near post-crisis lows.”

Source: Crain's Chicago Business

T. Rowe Price sees benefits of high-frequency trading

July 10, 2017

Added Valerie Bogard, equity analyst at TABB Group LLC, New York: "The buy side has gotten more comfortable with high-frequency trading firms, and they weren't before. A lot of their strategies used to make the buy side uncomfortable. But now the buy side understands much better how those firms work and they're ramping up their transaction cost analysis, and HFT firms are providing the liquidity they need."

Source: Pensions and Investments

U.S. Regulator Seeks to Fill Crisis-Era Gaps Riddling Swaps Data

July 6, 2017

There’s no single place to go to get the data,” said Larry Tabb, the founder of the Tabb Group, a capital markets-focused research firm. “If they had a crisis and a weekend to figure it out, this would be problematic. It would be very hard to figure out where all the counter-party risk would be.

Source: Bloomberg

Allegations of ‘fake news’ stretch beyond politics

July 4, 2017

Companies are launching efforts to root out phony news, engaging in a kind of technological arms race. Hedge funds that rely on computer algorithms make up nearly 30 percent of U.S. stock trades, nearly double the amount from just a few years ago, according to the research firm Tabb Group.

Source: The Washington Post

Allegations of ‘fake news’ stretch beyond politics

July 4, 2017

Companies are launching efforts to root out phony news, engaging in a kind of technological arms race. Hedge funds that rely on computer algorithms make up nearly 30 percent of U.S. stock trades, nearly double the amount from just a few years ago, according to the research firm Tabb Group.

Source: Washington Post

The Electronic Platform that took Markets Global Turns 25

June 28, 2017

For the user, Globex initially “was a clunky keyboard, plus a modem,” says Tom Lehrkinder, a former clerk on the trading floors of COMEX (Commodity Exchange) and NYMEX (New York Mercantile Exchange) in New York and now a senior analyst at TABB Group. “Only certain people had access to it,” he says.  “They were the Globex ‘operators,’ who were typically the younger execution staff. Everyone else was afraid of it.”

Source: Open Markets

Citadel Deepens Reach Into Wall Street's Bond-Dealing Stronghold

June 20, 2017

“Firms like Citadel, while they may not be able to compete on the capital side of the equation with large banks, make up for it through technological sophistication and their ability to be nimble,” said Anthony Perrotta, chief executive officer of research firm TABB Group LLC. Combined with their involvement in hedging an array of asset classes, it can “potentially provide them with the ability to punch much bigger above their weight in Treasuries.”

Source: Bloomberg

IEX struggles to maintain pace with copycat ‘speed bumps’

June 16, 2017

Its success so far has even garnered respect from those who lobbied against its approval by the Securities and Exchange Commission last year, including Larry Tabb, founder of research firm TABB Group.


“You have to give them kudos,” said Tabb, who had argued that IEX’s exchange itself might become anticompetitive. “Their challenge now is gaining market share.”

Source: New York Post

JPMorgan Ties Tech Sell-Off to Computer-Driven Trading (FB, AMZN)

June 14, 2017

According to data from market structure research firm TABB Group, high-frequency trading, a subset of quantitative trading, accounted for 52 percent of May's average daily trading volume of about 6.73 billion shares.

Source: Investopia

ETF Flexibility Drives Buy Side Adoption as Derivatives Market Complexity Grows

June 9, 2017

ETF Flexibility Drives Buy Side Adoption as Derivatives Market Complexity Grows, by Colby Jenkins, TABB Group.

Source: Tradeweb

Taking a second look at the maker-taker model

June 5, 2017

They can range between 20 and 32 cents per 100 shares, according to Larry Tabb, founder of TABB Group.

Source: Financial Times

Stock Options Trading Volume Strong Even as Volatility Dips

June 2, 2017

Volumes are holding pretty steady compared to the last few years, despite the lack of volatility in the marketplace," said Tom Lehrkinder, senior analyst at consultancy TABB Group.

Source: New York Times

Departures signal a changing of the guard in HFT

May 29, 2017

As Larry Tabb, founder of TABB Group, a capital markets consultancy, put it: “It goes to show that the market right now is in transition.”

Source: Financial Times

This is the future of investing, and you probably can't afford it

May 28, 2017

The rise of so-called alternative data has created a cottage industry of firms that source, process and consult on various data sources. The market for this data is expected to double in the next five years in the US, from $200 million today to $400 million, according to a recent TABB Group report.

Source: Yahoo Finance

Financial Firms Need Tech To Meet Mounting Regulatory Requirements

May 8, 2017

Regulations come too fast, organizations change too quickly and there’s just too much happening in finance to address regulations with manual processes, according to TABB Group’s report "Financial Markets: Embracing RegTech." The report was written by Monica Summerville, TABB Group’s London-based senior analyst with TABB Group FinTech research head Terry Roche and senior analyst Dayle Scher in New York.

Source: Forbes

Virtu and Citadel Securities go head to head in HFT

April 26, 2017

Larry Tabb, founder of the Tabb Group capital markets research company makes the point that KCG has some business in which neither Virtu nor Citadel are leaders, such as trading equities for large institutions. “Citadel has a strong retail presence, while Virtu mostly makes markets for exchanges and dark pools,” he notes.

Source: Financial Times

TABB: Institutional Investors See “Their Very Existence” Under Pressure

April 20, 2017

While MiFID II is a European regulation, any buy side firm conducting business in the region will be impacted. “Many of the large buy-side firms plan to follow and implement MiFID II regulations across the globe,” said TABB Group’s Valerie Bogard, who co-authored the report with Larry Tabb and Dayle Scher.

Source: ValueWalk

IPC Launches Global Exchange Reach Solution

March 29, 2017

"Liquidity venues are increasingly looking to attract institutional investors, asset managers, hedge funds and market makers outside their primary market to fuel profitable and sustainable growth," said Anthony J. Perrotta Jr., Chief Executive Officer, TABB Group, an international research and consulting firm focused exclusively on the capital markets. "At the same time, the investment community is seeking new ways to create alpha, source liquidity, diversify portfolios, manage trading costs and mitigate risk."


HFT as an insight into where fintech is going

March 28, 2017

Alex’s story repeats Tabb Group data documenting a roughly 85 percent drop in HFT revenues in US equity trading. The Virtu-KCG proposed tie-up and the Quantlabs-Teza consummated one are indications of consolidation that is typical of maturing industries, and a shift in the business model of these firms. The Quantlabs-Teza story is particularly interesting. It suggests that it is no longer possible (or at least remunerative) to get a competitive edge via speed alone.

Source: Financial Times

TABB Group makes hires in New York and London

March 15, 2017

TABB Group, a research and consulting firm focused on capital markets and financial technology, has hired Drew Seldin as chief marketing officer (CMO) and Radi Khasawneh and Tim Cave as additions to the analyst team.

Source: Institutional Asset Manager

High-frequency trading has reshaped Wall Street in its image

March 17, 2017

According to Credit Suisse, which cited data from TABB Group, high-frequency trading accounted for a little less than half of all equity trading in 2016—a rate that was roughly even with the previous three years.

Source: MarketWatch

All the ways AI will slash Wall Street jobs

March 16, 2017

“Natural language processing is helping to gain a greater understanding of conversations people are having, the intent of conversations in the front office,” said Terry Roche, head of fintech research at the TABB Group. “And mining data to gain greater insight to what’s happening” so it can give sales traders alerts about investment opportunities for their clients.

Source: American Banker

Virtu Offers $1.3 Billion for KCG to Create Trading Leader

March 15, 2017

The takeover bid comes as algorithmic trading revenue in the biggest markets has fallen. U.S. stock-market makers made $1.1 billion of revenue last year, compared with $7.2 billion in 2009, according to estimates from Tabb Group LLC. At the same time, the cost of doing business has increased, whether through high-speed networks or market-data feeds from stock exchanges.

Source: Bloomberg

Buy-side blame securities identification for trade failures

March 15, 2017

Research from TABB Group found 40% of buy-side firms said problems with securities identification lead to between 1%-5% of trade failures, while 10% of firms said it can cause between 6% and 10% of trade failures. In addition to the operational issues, 48% of asset managers predicted the price of symbology licenses to increase over the next two years. However, 24% of buy-side firms expect to pay less for licences as they move towards an open financial instrument global identifier methodology (FIGI), TABB said.

Source: The Trade

Tabb Advocates Open Source Financial Instrument Global Identification Framework

March 13, 2017

Back office security and data cleanliness are key issues among financial services professionals, a recent study by Tabb Group notes. In fact, poor data quality and difficulties tracking data lineage are the biggest challenges related to traditional instrument identification practices, with 95 survey respondents categorizing it as one of their top three pain points. A new Financial Instrument Global Identification (FIGI) framework could help streamline efforts, but it is not a panacea.

Source: ValueWalk

Policy shifts won't stop bond market evolution

March 6, 2017

Efforts to deregulate financial services won't halt changes in fixed-income market structure — particularly the increased use of electronic trading venues. TABB Group CEO Anthony Perrotta discusses.

Source: Pensions & Investments

Europe left exposed by demise of Anglo-German exchange merger

March 1, 2017

The European Union could be left with no exchange big enough to compete with U.S. rivals and no trading link into Britain if it allows the London Stock Exchange (LSE.L) and Deutsche Boerse (DB1Gn.DE) merger to die."It would be very difficult for ICE to come in. It would run into the same complications," Larry Tabb, who heads the TABB consultancy on trading in New York, said.

Source: Reuters

How Hedge Funds Use Twitter to Gain an Edge in Trading

March 1, 2017

Among social media platforms, Twitter is by far the largest source of data, according to Valerie Bogard, an equities research analyst at Tabb Group, a capital markets consulting firm. With growing demand, the number of companies that mine and analyze social media data, like Dataminr and TickerTags, has exploded in recent years. “Traders have been using Twitter since its launch [in 2006],” but gained more traction in 2013, said Bogard.

Source: Epoch Times

The Race to the Speed of Light Is Accelerating

February 8, 2017

The revenue available to algorithmic traders is falling in some key markets. In U.S. stocks, for example, market makers earned $1.1 billion of revenue last year, compared with $7.2 billion in 2009, according to Tabb Group estimates.

Source: Bloomberg

When Trump's tweets rile Wall Street

January 25, 2017

Presidents can impact markets generally. But a president willing to call out individual companies, repeatedly and without warning, is essentially unknown. "Certainly in my life, and I’ve been in the industry since 1980, I haven’t seen anything like it,” said Larry Tabb, founder of TABB Group, which tracks technological change in financial markets.


TABB Group Reveals High Frequency Trading Methods In New Report

January 22, 2017

The TABB report, “Speed: Why It Matters And What Can Be Done,” takes apart key issues in HFT as it relates to firm profitability, electronic market making, proprietary trading and traditional long-only investing.

Source: ValueWalk

Trump's 'Acting' CFTC Chair Details Vision for Blockchain Regulation

January 19, 2017

Larry Tabb, industry analyst and founder of Tabb Group, told CoinDesk that even if a blockchain solution was feasible – and useful – it might not save enough money to be worth implementing.

European banks downsizing role in client clearing

January 13, 2017

The TABB report suggested further FCM consolidation would add further stress on those existing banks. “The resulting consolidation may finally reach a concerning point in terms of the remaining FCMs having enough capital to support the business,” TABB states.

Stocks close lower; Dow posts worst week in a month

June 17, 2016

High-frequency trading accounted for 49 percent of June's daily trading volume of about 6.75 billion shares, according to TABB Group. During the peak levels of high-frequency trading in 2009, about 61 percent of 9.8 billion of average daily shares traded were executed by high-frequency traders.

ICE may have more time to consider bid for London bourse

May 2, 2016

London Stock Exchange Group and Deutsche Boerse may have to delay a vote on their proposed merger until after Britain's EU referendum, handing more time to Intercontinental Exchange to decide whether to make a counter-bid for the British bourse."They are very conscious of their own stock price, that they are a growth company. If they had not done the IDC deal, you would see this move a little quicker," said Richard Daniels, senior analyst of TABB Group in New York.

New TABB Equity Digest: Industry Trade Size Hits New Low - 15 Dark ATSs Execute 90% Of Total Dark ATS Volume

March 4, 2016

The latest quarterly edition of the “TABB Equity Digest” research is now available, providing  an exclusive data-rich view into US equity market trends. The timing of the report, written by Sayena Mostowfi, principal, head of equities research, and equities research analyst Valerie Bogard, is in arrear to capture the 605, 606 and various SEC publications for the quarter.

TABB Group Identifies the Challenges Facing Blockchain in Disrupting the Status Quo

February 22, 2016

“Blockchain Clearing and Settlement: Crossing the Chasm”, TABB CEO Larry Tabb explains that details over informational leakage, how the securities lending and foreign exchange markets operate, as well as what actually occurs in the clearing process today, must be addressed before the industry begins restructuring firms’ processing facilities with blockchain technology.

Source: The Merkle

Chinese interest in Chicago Stock Exchange rings alarm bells in Congress

Feb. 18, 2016

As of January, the Chicago Stock Exchange handled just 0.5% of U.S. trading, making it the third-smallest U.S. exchange, according to TABB Group. Minority owners include Bank of America (BAC),E*Trade (ETFC), Goldman Sachs (GS) and JPMorgan Chase (JPM).

Options Decline Despite Vol Jump

Jan. 19, 2016

According to TABB Group, US options activity has seen its compound annual growth rate fall to -2.4% since 2011. During the preceding decade, the market grew at a CAGR of 19%. “While a lack of market turbulence was a plausible excuse for lacklustre volume growth in years past, that reasoning was not as tenable in 2015,” said Callie Bost, a TABB analyst.

The total trading volume of listed options in the US came in at 323.3 million contracts during November, down 11 percent from the previous month, TABB Group said in its latest Options LiquidityMatrix. On an annual basis, however, volumes were up 9.7 percent.

Can Banks Ride the Surge of Fintech, Or Has the Wave Gotten Too High?

Oct. 26, 2015

Sorting out the cacophony was the subject of the “FinTech Barbarians at the Gates” MarketTech 2015 conference held on Wednesday in New York. The final panel, moderated by Matt Simon, a principal with event host TABB Group, focused on the rush of innovators trying to revitalize and disrupt the industry, and what financial institutions actually do in the face of proposed change.

"Large global banks that have tremendous scale are increasingly internalizing, and becoming liquidity takers instead of liquidity providers," said Anthony Perrotta, a partner at financial research firm Tabb Group LLC.

Building an audit trail is complicated: “We need to be able to reconstruct the market within three days,” says Shagun Bali, a financial technology analyst at TABB Group. “The problem is that it is such a large undertaking.”

ASX advised to avoid Brazil model and keep lid on transaction costs

Sept. 30, 2015

Larry Tabb says the Australian market was an "odd" one, where the ASX is able to achieve some of the highest profit margins on the planet.

ASX chief Elmer Funke Kupper concerned about speed of global economic recovery

Sept. 30, 2015

Mr Holliday-Smith also responded to comments made by trading expert Larry Tabb from TABB Group in The Australian Financial Review on Wednesday that the ASX was keeping profits at the expense of traders and brokers. Mr Tabb said the ASX did "a very good job of generating revenue, but on the flipside, every dollar of revenue for the exchange comes out of someone's pocket, either the broker or the investor".

Anthony Perrotta, partner at researcher Tabb Group, estimates superfast, nonbank trading firms account for 60% of activity in the most active corners of electronic Treasury trading, up from 45% in 2012.

New Speed Limits on EBS BrokerTec Not There to Deter HFT

September 3, 2015

The move is a necessary one if you believe that a wide array of your customers don’t have access to the same connectivity into your liquidity pool,” says Anthony Perrotta, principal, head of fixed income research at Tabb Group.

Was This a Flash Crash? And Other Questions About Monday’s Swoon

August 24, 2015

U.S. investors were jittery on Monday morning after fears of an economic slowdown had rocked markets around the world.

Stocks: Not Quite the Flash Crash But…

August 24, 2015

Well folks, it wasn’t quite the Flash Crash today, but neither did the market trade as well as regulators probably hoped. Tabb Group’s Luther Zhao explains...

U.S. ATS/SDP Trading Volume Rises 16% in July, Hitting 35% of Total Off- Exchange Volume

August 20, 2015

Against a backdrop of rising U.S. equity trading volume on the public markets, off-board trading rose in July also. Tabb Group, in its monthly Equities Liquidity Matrix, reported the rise in dark volume was the largest increase since October 2014.

The Perfect Recipe for a Fixed Income Platform

August 13, 2015

The failure of Bondcube – an electronic bond platform that was forced to close in July – has raised questions over the viability of other new venues aimed at easing the liquidity crunch in fixed income markets. A less oft-asked but arguably more vital question is: what are the ingredients such platforms need to succeed?

US Options' Rude Health Under Threat

August 12, 2015

Luther Zhao, an analyst at consultancy the Tabb Group, said, "July officially sets a new record for highest monthly volumes in 2015 and is the highest reading.

Credit Suisse, Barclays in Talks to Settle ‘Dark Pool’ Allegations

August 12, 2015

Credit Suisse and Barclays, two of the biggest operators of “dark pools,” have entered settlement negotiations with the New York attorney general and the Securities and Exchange Commission over allegations of wrongdoing in the private trading venues, said people familiar with the matter.

Goldman Sachs to Give Out ‘Secret Sauce’ on Trading

August 12, 2015

In a major shift for Goldman Sachs Group Inc., the firm is preparing to give away some of the “secret sauce” behind its trading ideas. Goldman will soon offer clients access to more of its in-house tools, such as high-powered databases that analyze markets and manage risk, according to the firm’s executives.

Banks Pitch Swaps as Alternative to Buying Stock

July 30, 2015

Banks are nudging certain hedge-fund clients to use derivatives instead of actual stocks when placing some bets, an effort aimed at lessening the impact of new capital rules on the banks’ businesses.

Media companies are banding together with Wall Street to take on one of the most entrenched players in finance

July 28, 2015

An alliance of banks and media companies is forming to take on Bloomberg's dominance of Wall Street's technology infrastructure in more ways than one.

How Leo Melamed Took The CME From Open Outcry To Electronic Trading

July 24, 2015

Leo Melamed was the driving force for technology at the CME, said Michael Gorham, Professor of Finance and Director of the Center for Financial Innovation at Illinois Institute of Technology Stuart School of Business.

The Need for Feeds: More than Just Speed

July 27, 2015

Barely a decade ago, traders began eschewing traditional consolidated datafeeds in favor of direct feeds from exchanges, in their pursuit of lower latency. The markets were becoming faster, and everyone had to keep pace if they wanted to remain competitive. At first, these latency gains were fairly easy and inexpensive to achieve. But after plucking all the low-hanging fruit, firms found that more significant gains came at a much higher price, and eventually became a pursuit of diminishing returns for many firms, and now some firms are exiting that race rather than keep pouring money at it.

Federal Government Data Hack Could Expose Undercover Intelligence Officers Abroad

July 22, 2015

The recent hack of data held by the U.S. Office of Personnel Management has raised concerns that the identities of undercover intelligence officers working abroad could be exposed.

Fake News Moves Markets, but it’s Nothing New

July 17, 2015

As long as there is a stock market, there will be people planting fake news stories for personal gain — and investors willing to trade first and ask questions later.

In Euclid's Shadow, A Futuristic Hedge Fund

July 14, 2015

People who are accelerating our culture and advancing the conversation – for good or for ill. You may not have heard of them yet – but you'll soon need to know 'em.

US Calls for Review of HFT Rules Over Bonds Meltdown

July 13, 2015

High-frequency traders could face a wave of new regulation after US authorities called for a broad review of the rules that govern them following a burst of volatility that shook faith in markets’ resilience.

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