One Year After "Flash Boys", Investors Remain Concerned About High Frequency Trading

NEW YORK, March 24, 2015 /PRNewswire/ -- Convergex, an agency-focused global brokerage and trading related services provider, has released the results of its U.S. Equity Market Structure "Flashback" Survey, exploring the concerns and actions of financial industry participants regarding high frequency trading (HFT), regulatory oversight and market stability, nearly one year after the release of the controversial book "Flash Boys" by Michael Lewis. Conducted from March 17 to March 19, 2015, the survey results reveal an investment community with remaining concerns about U.S. equity market structure, yet feeling more positive than one year ago (as measured against Convergex's April 2014 U.S. Equity Market Structure Survey).

A majority of respondents (57%) still say that markets are not fair for all participants, down from 70% who said the same thing in April 2014, and more than one-third (36%) describe HFT as "harmful" or "very harmful" to investors, versus fifty-one percent (51%) in the previous survey. Fewer than half of those surveyed (42%) report having changed how they interact with markets because of the ongoing HFT debate, but that number has almost doubled from 2014.

"Wall Street's perception of markets has clearly shifted," said Eric Noll, Convergex president and chief executive officer. "Today's market structure is complex and challenging. Investors are more comfortable now than they were a year ago, but they're still largely unsure of how this impacts them and what changes they should make to the way they trade."

The U.S. Equity Market Structure "Flashback" Survey also asked industry participants about specific steps they have taken in response to the HFT debate, the role of regulations, and confidence in the markets' ability to handle a sudden shock or crisis.

Full survey results will be available on the Convergex website here.

CONVERGEX HOSTS MARKET STRUCTURE WEBINAR
On Thursday, March 26, 2015 at 8:30 a.m. ET, Convergex president and CEO Eric Noll and chief market strategist Nicholas Colas will host a webinar on U.S. Equity Market Structure in 2015 and the results of the Convergex U.S. Equity Market Structure "Flashback" Survey.

This webinar is free of charge and is open to members of the media. Participants will be able to ask questions of the hosts. Please click here to register.

Methodology
The Convergex U.S. Market Structure "Flashback" Survey was performed by Convergex via an anonymous online survey of financial industry participants, resulting in 245 respondents. The survey was conducted from March 17 to March 19, 2015, and has a margin of error of +/- 10%. Respondents included buy-side firms (asset managers, hedge funds, pension plans), sell-side firms (banks, broker-dealers), trading venues, service providers and other financial industry participants. Rounding of decimal results may produce totals over or under 100% (by 1%).

About Convergex
Convergex is an agency-focused global brokerage and trading related services provider that takes on the industry's toughest challenges, from complicated trades to complex businesses.  With clients' interests as the top priority, Convergex delivers comprehensive solutions that span global high-touch and electronic trading, options technologies, prime brokerage, clearing, commission management and beyond. Headquartered in New York with a presence in several other locations including Atlanta, Boston, Chicago, Orlando, San Francisco and London, the company serves nearly 3,000 clients accessing over 100 global market centers. Convergex provides brokerage services primarily on an agency basis, but may operate in a riskless principal and/or net trading capacity, and in connection with certain ETF or ADR transactions, may act as principal or engage in hedging strategies with such transactions. Convergex does not engage in market making or investment banking activities, other than as a selling group member.

In the U.S., Convergex offers products and services through Convergex Execution Solutions LLC (member NYSE/FINRA/SIPC); G-Trade Services LLC (member FINRA/SIPC); Westminster Research Associates LLC (member FINRA/SIPC); Convergex Depositary, Inc., and Convergex Solutions LLC, of which Connex, Jaywalk and LDB are divisions.

In London, Convergex operates through Convergex Limited, which is incorporated in England and Wales (registered with company number 06262150). Convergex Limited is authorized and regulated by the Financial Conduct Authority (FCA) of the United Kingdom.

The material, data and information (collectively "Convergex Information") that is available from Convergex is intended for institutional investor use only; is for informational purposes only; is subject to change at any time; is not intended to provide tax, legal or investment advice; and does not constitute a solicitation or offer to purchase or sell securities. Convergex Information is believed to be reliable, but Convergex does not warrant its completeness or accuracy. Clients should read their agreement with Convergex carefully as it contains important information and disclosures about the product or service covered by it. (Rev. 12/2/14)

Please be advised that options carry a high level of risk and are not suitable for all investors. To receive a copy of the Options Disclosure Document, please contact the Convergex Compliance Department at (800) 367-8998.

Contact:
Michael Kingsley 
[email protected] 
212.468.7713

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SOURCE ConvergEx Group

Related Links

http://www.convergex.com

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