(July 4) – Wall Street’s buyside traders are indifferent to proposed global market linkages, according to a story from the Wall Street Letter.
The WSL says that buyside traders aren’t planning any changes to their trading strategies in view of proposed new market alliances. “Many said they are skeptical about whether volume in foreign markets will be strong enough,” says the WSL. One unnamed money manager is quoted as saying, “Who’s going to buy IBM in Germany during European hours, or who’s going to buy Oracle in Hong Kong? The bottom line to me is: can you convince me that there’s going to be enough liquidity trading in Hong Kong to suggest that I need to change my trading strategies?”
The question is even more acute for proposed Canadian alliances, since trading in other areas at least occurs at different times allowing traders to move on news that would typically come in off-market hours for New York traders. Since U.S. and Canadian trading hours coincide the value of an alliance to U.S. traders is uncertain.
NASDAQ has launched operations in Hong Kong and Japan, and it has plans in place with European markets, the province of Quebec and the Middle East. The NYSE has announced a plan to create the Global Equity Market with nine other exchanges, including the Toronto Stock Exchange, EuroNext, the Hong Kong Exchange and the Tokyo Stock Exchange.
-IE Staff