Abel/Noser May Equity Liquidity Analysis Shows Less than 2 Percent of U.S. Equities are Impacted by High-Frequency Trading
Trade Execution Pioneer Reinvigorates Monthly Liquidity Analysis
NEW YORK, June 12, 2013 /PRNewswire/ -- Abel/Noser Corp. re-launched its monthly liquidity analysis that provides investors with clear, concise trading information during this time of uncertainty. Going forward, this report will be made available 10 days after the end of the month and will outline the top 20 liquidity figures for the month.
"Given today's market volatility, it is vital that investors are provided with timely insights into what trends are actually impacting the trading environment," said Bill Conlin, CEO of Abel/Noser. "Often on Wall Street, brokers and other vendors tout the speed at which they can transact equity trades. With 'nanoseconds' and 'latency' being the buzz words, it may lead people to believe that thousands of stocks are trading at the speed of light all day every day, which is simply not the case."
Abel/Noser's analysis provides the following insights on how stocks trade:
- About 13,000 equity issues were traded in the U.S. during May 2013; this included ETFs and individual company stocks.
- The ten most liquid names made up nineteen percent of all dollars traded.
- The twenty-three most liquid stocks traded twenty-five percent of the average daily dollars in the US market
- The 143 most liquid names represented fifty percent of all equity dollars traded.
- The 523 most liquid stocks account for seventy-five percent of all dollars traded in US equity markets.
"Of all of the names in our liquidity analysis, on average only 184 trade one time or more per second, with the largest (SPY) trading six times per second and the second largest three times per second," continued Conlin. "Given that less than 2 percent of U.S. equities are even subject to high-frequency trading, the investor community should focus more on efficient and cost-effective trade execution instead of low-latency."
Aside from discrepancies when it comes to speed, share size is also commonly misunderstood. There are very few stocks with an average trade size of greater than 400 shares. Once one is below the stock ranked 143 in average daily trading values in dollars, the average trade size drops to below 300 shares per trade.
Full Liquidity Reporting is available for a small annual subscription price. Please contact [email protected] or visit us at www.abelnoser.com
May 2013 Liquidity report:
Liquidity Report: 05/01/2013 to 05/31/2013
Rank |
Symbol |
Name |
Average $ Per |
Cumulative $ Per |
% of Grand Total |
Cumulative % of Total |
Avg Trade Size |
Avg Trades |
1 |
SPY |
SPDR S&P 500 ETF TRUST |
19,305,175,040 |
19,305,175,040 |
8.78 |
8.78 |
411 |
398 |
2 |
AAPL |
APPLE INC |
6,616,986,112 |
25,922,161,152 |
3.01 |
11.78 |
178 |
138 |
10 |
C |
CITIGROUP INC |
1,395,213,952 |
42,048,600,832 |
0.63 |
19.11 |
277 |
195 |
23 |
GE |
GENERAL ELECTRIC CO |
866,947,712 |
55,755,786,880 |
0.39 |
25.34 |
478 |
167 |
143 |
VALE |
VALE SA-SP ADR |
271,865,856 |
110,030,431,360 |
0.12 |
50.02 |
351 |
108 |
523 |
CMCSK |
COMCAST CORP-SPECIAL CL A |
88,416,928 |
165,069,353,584 |
0.04 |
75.03 |
164 |
34 |
About Abel/Noser Corp.
Abel/Noser Is one of the oldest and largest independent agency brokerages providing a range of tools and services for institutional sponsors and investment managers. Abel/Noser offers comprehensive solutions and analytics throughout the pre-trade, execution and post-trade cycle, including Transaction Cost Analysis (TCA), domestic and international commission recapture for equities and fixed income, transition management, liquidity analysis and customized algorithms. Founded in 1975 and headquartered in New York, Abel/Noser is a member of the NYSE, FINRA and SIPC.
About Abel Noser Solutions
A sister company to Abel/Noser, Abel Noser Solutions was launched in 2007 to pioneer new trading methods, and to provide broker-neutral pre-trade, real-time and post-trade tools to institutional investors. Each day the company collects data from over 500 firms, and records trading data for over 20,000 stocks that trade on over 100 exchanges to provide one of the most comprehensive views of the industry. Clients receive actionable analysis at every point in the trade lifecycle, and on average pay commissions that are 44% lower than industry benchmarks
Contacts:
Sharron Silvers / Taylor McGrann
KCSA Strategic Communications
212-896-1282 / 212-896-1253
[email protected] / [email protected]
SOURCE Abel/Noser Corp.
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