Trade Cycle Management by Arun Kaul, Sparta CIO
Updated: Dec 29, 2021
Published in Wall Street Letter.
Arun Kaul writes about the technical issues facing portfolio managers and traders in today’s fragmented market.
"As the size and complexity of today’s market microstructure continues to grow, the challenges facing investors as they attempt to manage the trade cycle have grown accordingly. Today’s marketplace, which includes more than a dozen registered stock exchanges, almost three dozen ATS’s and a number of wholesalers and internalizing brokers, creates a number of technical challenges that portfolio managers and traders must manage closely.
While the speed or time scale of trading has increased dramatically, the length of the trade cycle, especially for large asset managers or long-term investors, has not decreased. Th e length of the trade cycle can be determined by two critical criteria; the time horizon of the expected return forecast and the size of the trade in relation to the average daily trading volume"
Read more below (article on page 9):