Aqua Securities's David Frisone

Block Trading Supply Chain Is Broken

Buy-side firms are growing increasingly uneasy with the lack of transparency into algorithmic executions; yet they continue to search for ways to navigate fragmented liquidity and trade large size. The problem, according to David Frisone, head of sales at ATS Aqua Securities, is that current market structure punishes firms in the form of information leakage for being transparent with block orders, making it difficult for buyers and sellers to find each other. Speaking with TABB Group founder and CEO Larry Tabb at TabbFORUM’s recent 2015 equity conference, “A New Vision Forward,” Frisone explains how Aqua uses price and spread capture to incentivize liquidity providers while providing a safe mechanism for large blocks to find each other. He also discusses the role of TCA in further creating an incentive to trade blocks.

 

Related article: “How Reg ATS Destroyed Buy-Side Price Discovery and Block Liquidity” 

Interviewer: Larry Tabb

Source: TABB TV

Categories: Crypto, Equities, Fintech, Regulatory

Topics: Compliance, Data management, Equity trading, Liquidity management, Market structure: Exchanges, ATSs, ECNs, Regulations, Risk management, Trade Process Analysis, Trading technology infrastructure, Transaction cost research

TabbFORUM is an open community that provides a platform for capital markets professionals to share their ideas and thought leadership with their peers. The views and opinions expressed are solely those of the author(s). They do not necessarily reflect the opinions of TABB Group, its analysts, TabbFORUM and its editors, or their employees, affiliates and partners.

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