MarketsMuse.com Options market update focuses on recent industry report canvassing the perch of buyside managers perspective as to the good, the bad and the ugly sell-side broker elements they encounter in the course of increasing use of listed options products is courtesy of recent report issued by industry think tank, TABB Group.
Not surprisingly, buy-side managers canvassed in this study (including traditional managers and hedge fund managers) found that execution quality is paramount, particularly as market structure evolves and fragmentation rises, more important, the fact that liquidity from traditional ‘capital commitment’ desks–and the ease in which an institutional customer can execute “on the wire” is diminishing for all but most favored-clients.
The TABB study provides further insight as to which option products are of the greatest use to managers, the importance of algos vs. the importance of research and the most important ‘value-adds’ that sell-side brokers can contribute.
