On January 3, MBS Source, a popular US electronic trading firm, revealed that its trading activities saw a significant growth from the period of January 1, 2021 to November 30 2021 compared to the same period in 2020. The growth demonstrates an increasing interest in structured products among customers. For the period highlighted above, MBS Source witnessed over 100% growth in the number of its customers and a 180%+ increase in trading volume.
Mihai Szabo, CEO and Founder of MBS Source, talked about the development and said: “Structured products such as RMBS, CMBS, ABS, and CLOs are among the last market segments to adopt electronic trading. Both
sell-side
Sell-Side
Those in the financial industry involved with the production, marketing, and the sale of bonds, forex, stocks, and other financial instruments constitute the sell-side.Products and services produced by the sell-side are geared towards those who on the buy-side. You can think of the sell-side and buy-side like a coin, you cannot have one side without the other. The sell-side is comprised of individuals, firms, fintech companies, and market makers, who are responsible for providing liquidity in the market.Providing analysis and market insight for the buy-side, the sell-side attempts to secure the highest price rates for every financial instrument supported while any entity that purchases stock resides within the buy-side. What Makes Up the Sell-Side?In the foreign exchange market, multinational banks like JP Morgan, UBS, and Citibank compose the sell-side while the trading rooms for these banks are segmented into two groups. The first group is made up of interbank traders who purchase or sell large currency sums of currency on the forward and spot markets.Conversely, the second group is comprised of marketers who sell securities to clients on the buy-side, such as mutual and hedge funds and large businesses. In the stock market sell-side, investment banks sell stocks to both institutional and retail investors, take trading positions, and underwrite stock issuance.This means that they raise investment capital in the form of both equity and capital debt for entities who issue securities. Initial public offerings (IPOs) are one of the most anticipated events for the sell-side of the stock market. Th bond market sell-side has been pretty much monopolized by investment banks such as Goldman Sachs and Morgan Stanley. Banks that underwrite and service bond issues is a joint commercial single holding company of both Bank of America Merrill Lynch and JP Morgan Chase, who also are the primary dealer of U.S. Treasury Bonds while these banks are quite active with the purchasing and trading of the bond market.
Those in the financial industry involved with the production, marketing, and the sale of bonds, forex, stocks, and other financial instruments constitute the sell-side.Products and services produced by the sell-side are geared towards those who on the buy-side. You can think of the sell-side and buy-side like a coin, you cannot have one side without the other. The sell-side is comprised of individuals, firms, fintech companies, and market makers, who are responsible for providing liquidity in the market.Providing analysis and market insight for the buy-side, the sell-side attempts to secure the highest price rates for every financial instrument supported while any entity that purchases stock resides within the buy-side. What Makes Up the Sell-Side?In the foreign exchange market, multinational banks like JP Morgan, UBS, and Citibank compose the sell-side while the trading rooms for these banks are segmented into two groups. The first group is made up of interbank traders who purchase or sell large currency sums of currency on the forward and spot markets.Conversely, the second group is comprised of marketers who sell securities to clients on the buy-side, such as mutual and hedge funds and large businesses. In the stock market sell-side, investment banks sell stocks to both institutional and retail investors, take trading positions, and underwrite stock issuance.This means that they raise investment capital in the form of both equity and capital debt for entities who issue securities. Initial public offerings (IPOs) are one of the most anticipated events for the sell-side of the stock market. Th bond market sell-side has been pretty much monopolized by investment banks such as Goldman Sachs and Morgan Stanley. Banks that underwrite and service bond issues is a joint commercial single holding company of both Bank of America Merrill Lynch and JP Morgan Chase, who also are the primary dealer of U.S. Treasury Bonds while these banks are quite active with the purchasing and trading of the bond market.
Read this Term and
buy-side
Buy-Side
The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim of satisfying their client’s portfolio demands. Through the analysis and acquisition of underpriced assets, buy-side entities purchase these assets with the prediction that they will appreciate. Moreover, the largest buy-side participants include firms such as BlackRock, The Vanguard Group, and UBS Group to name a few. It is important to note that firms such as BlackRock are able to influence market prices as a result of placing large investments under single entities while the Securities and Exchange Commission (SEC) requires a quarterly 13-F filing for all holdings bought or sold by buy-side managers. What differentiates buy-side investors from other traders would be the advantages that are yielded to them. Buy-side investors not only have access to a much broader range of trading resources and market insight but also tend to possess decreased trading costs through large lot acquisitions. To sum up, firms work with buy-side analysts to provide research recommendations that are kept exclusive to those participants of the firm while all analysts are overseen by regulations set forth by the International Organization of Securities Commissions (IOSCO).
The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim of satisfying their client’s portfolio demands. Through the analysis and acquisition of underpriced assets, buy-side entities purchase these assets with the prediction that they will appreciate. Moreover, the largest buy-side participants include firms such as BlackRock, The Vanguard Group, and UBS Group to name a few. It is important to note that firms such as BlackRock are able to influence market prices as a result of placing large investments under single entities while the Securities and Exchange Commission (SEC) requires a quarterly 13-F filing for all holdings bought or sold by buy-side managers. What differentiates buy-side investors from other traders would be the advantages that are yielded to them. Buy-side investors not only have access to a much broader range of trading resources and market insight but also tend to possess decreased trading costs through large lot acquisitions. To sum up, firms work with buy-side analysts to provide research recommendations that are kept exclusive to those participants of the firm while all analysts are overseen by regulations set forth by the International Organization of Securities Commissions (IOSCO).
Read this Term participants recognize the advantages of sourcing and trading electronically over the more traditional email and phone call workflows.”
According to the annual report by MBS Source, the number of firms participating in electronic trading rose over 100% for both buy-side and sell-side firms.
The Rise of Electronic Trading
The development by MBS Source comes at a time when electronic trading companies have become an increasing force in financial markets. Such companies engage in high-frequencytrading using advanced computer algorithms. They also serve as market makers, thus offering trading services for investors, which assists in promoting market liquidity. Some of the major firms participating in the electronic trading landscape include Two Sigma Investments, Wolverine Trading Company, Virtu Financial, Citadel Securities, Jane Street, Susquehanna International Group, among others.
Market analysts say that electronic trading companies account for about half of the equities trading volume in the US. The super-fast speed with which computer algorithms can sort data enables them to take advantage of unique arbitrage opportunities. Such programs can spot price discrepancies between securities and make profit from price fluctuations. Arbitrage strategies can take various forms such as global macro arbitrage, merger arbitrage, volatility arbitrage, events arbitrage, and index arbitrage.
However, the popularity of arbitrage strategies has faced a number of challenges including regulatory scrutiny and risks associated with software malfunctions. In 2012, Knight Capital Group, a US global electronic trading firm, almost became bankrupt after it lost $440 million within a single hour due to a trading glitch caused by software malfunctions. After the horrific incident, market regulators imposed increased risk management obligations on algorithmic electronic trading companies.
On January 3, MBS Source, a popular US electronic trading firm, revealed that its trading activities saw a significant growth from the period of January 1, 2021 to November 30 2021 compared to the same period in 2020. The growth demonstrates an increasing interest in structured products among customers. For the period highlighted above, MBS Source witnessed over 100% growth in the number of its customers and a 180%+ increase in trading volume.
Mihai Szabo, CEO and Founder of MBS Source, talked about the development and said: “Structured products such as RMBS, CMBS, ABS, and CLOs are among the last market segments to adopt electronic trading. Both
sell-side
Sell-Side
Those in the financial industry involved with the production, marketing, and the sale of bonds, forex, stocks, and other financial instruments constitute the sell-side.Products and services produced by the sell-side are geared towards those who on the buy-side. You can think of the sell-side and buy-side like a coin, you cannot have one side without the other. The sell-side is comprised of individuals, firms, fintech companies, and market makers, who are responsible for providing liquidity in the market.Providing analysis and market insight for the buy-side, the sell-side attempts to secure the highest price rates for every financial instrument supported while any entity that purchases stock resides within the buy-side. What Makes Up the Sell-Side?In the foreign exchange market, multinational banks like JP Morgan, UBS, and Citibank compose the sell-side while the trading rooms for these banks are segmented into two groups. The first group is made up of interbank traders who purchase or sell large currency sums of currency on the forward and spot markets.Conversely, the second group is comprised of marketers who sell securities to clients on the buy-side, such as mutual and hedge funds and large businesses. In the stock market sell-side, investment banks sell stocks to both institutional and retail investors, take trading positions, and underwrite stock issuance.This means that they raise investment capital in the form of both equity and capital debt for entities who issue securities. Initial public offerings (IPOs) are one of the most anticipated events for the sell-side of the stock market. Th bond market sell-side has been pretty much monopolized by investment banks such as Goldman Sachs and Morgan Stanley. Banks that underwrite and service bond issues is a joint commercial single holding company of both Bank of America Merrill Lynch and JP Morgan Chase, who also are the primary dealer of U.S. Treasury Bonds while these banks are quite active with the purchasing and trading of the bond market.
Those in the financial industry involved with the production, marketing, and the sale of bonds, forex, stocks, and other financial instruments constitute the sell-side.Products and services produced by the sell-side are geared towards those who on the buy-side. You can think of the sell-side and buy-side like a coin, you cannot have one side without the other. The sell-side is comprised of individuals, firms, fintech companies, and market makers, who are responsible for providing liquidity in the market.Providing analysis and market insight for the buy-side, the sell-side attempts to secure the highest price rates for every financial instrument supported while any entity that purchases stock resides within the buy-side. What Makes Up the Sell-Side?In the foreign exchange market, multinational banks like JP Morgan, UBS, and Citibank compose the sell-side while the trading rooms for these banks are segmented into two groups. The first group is made up of interbank traders who purchase or sell large currency sums of currency on the forward and spot markets.Conversely, the second group is comprised of marketers who sell securities to clients on the buy-side, such as mutual and hedge funds and large businesses. In the stock market sell-side, investment banks sell stocks to both institutional and retail investors, take trading positions, and underwrite stock issuance.This means that they raise investment capital in the form of both equity and capital debt for entities who issue securities. Initial public offerings (IPOs) are one of the most anticipated events for the sell-side of the stock market. Th bond market sell-side has been pretty much monopolized by investment banks such as Goldman Sachs and Morgan Stanley. Banks that underwrite and service bond issues is a joint commercial single holding company of both Bank of America Merrill Lynch and JP Morgan Chase, who also are the primary dealer of U.S. Treasury Bonds while these banks are quite active with the purchasing and trading of the bond market.
Read this Term and
buy-side
Buy-Side
The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim of satisfying their client’s portfolio demands. Through the analysis and acquisition of underpriced assets, buy-side entities purchase these assets with the prediction that they will appreciate. Moreover, the largest buy-side participants include firms such as BlackRock, The Vanguard Group, and UBS Group to name a few. It is important to note that firms such as BlackRock are able to influence market prices as a result of placing large investments under single entities while the Securities and Exchange Commission (SEC) requires a quarterly 13-F filing for all holdings bought or sold by buy-side managers. What differentiates buy-side investors from other traders would be the advantages that are yielded to them. Buy-side investors not only have access to a much broader range of trading resources and market insight but also tend to possess decreased trading costs through large lot acquisitions. To sum up, firms work with buy-side analysts to provide research recommendations that are kept exclusive to those participants of the firm while all analysts are overseen by regulations set forth by the International Organization of Securities Commissions (IOSCO).
The buy-side is comprised of firms in the financial industry that purchase securities and are accompanied by account investment managers, pension funds, and hedge funds.The buy-side is composed of those that buy and invest large sums of securities with the intention of generating a lucrative return or have their funds managed. The Buy-Side ExplainedIn terms of Wall Street, the buy-side includes investment institutions that purchase securities, stocks, or other financial instruments with the aim of satisfying their client’s portfolio demands. Through the analysis and acquisition of underpriced assets, buy-side entities purchase these assets with the prediction that they will appreciate. Moreover, the largest buy-side participants include firms such as BlackRock, The Vanguard Group, and UBS Group to name a few. It is important to note that firms such as BlackRock are able to influence market prices as a result of placing large investments under single entities while the Securities and Exchange Commission (SEC) requires a quarterly 13-F filing for all holdings bought or sold by buy-side managers. What differentiates buy-side investors from other traders would be the advantages that are yielded to them. Buy-side investors not only have access to a much broader range of trading resources and market insight but also tend to possess decreased trading costs through large lot acquisitions. To sum up, firms work with buy-side analysts to provide research recommendations that are kept exclusive to those participants of the firm while all analysts are overseen by regulations set forth by the International Organization of Securities Commissions (IOSCO).
Read this Term participants recognize the advantages of sourcing and trading electronically over the more traditional email and phone call workflows.”
According to the annual report by MBS Source, the number of firms participating in electronic trading rose over 100% for both buy-side and sell-side firms.
The Rise of Electronic Trading
The development by MBS Source comes at a time when electronic trading companies have become an increasing force in financial markets. Such companies engage in high-frequencytrading using advanced computer algorithms. They also serve as market makers, thus offering trading services for investors, which assists in promoting market liquidity. Some of the major firms participating in the electronic trading landscape include Two Sigma Investments, Wolverine Trading Company, Virtu Financial, Citadel Securities, Jane Street, Susquehanna International Group, among others.
Market analysts say that electronic trading companies account for about half of the equities trading volume in the US. The super-fast speed with which computer algorithms can sort data enables them to take advantage of unique arbitrage opportunities. Such programs can spot price discrepancies between securities and make profit from price fluctuations. Arbitrage strategies can take various forms such as global macro arbitrage, merger arbitrage, volatility arbitrage, events arbitrage, and index arbitrage.
However, the popularity of arbitrage strategies has faced a number of challenges including regulatory scrutiny and risks associated with software malfunctions. In 2012, Knight Capital Group, a US global electronic trading firm, almost became bankrupt after it lost $440 million within a single hour due to a trading glitch caused by software malfunctions. After the horrific incident, market regulators imposed increased risk management obligations on algorithmic electronic trading companies.
Source: https://www.financemagnates.com/forex/mbs-source-sees-100-growth-in-electronic-trading/