{"id":27203,"date":"2017-10-24T17:16:14","date_gmt":"2017-10-24T22:16:14","guid":{"rendered":"http:\/\/olduvai.ca\/?p=27203"},"modified":"2017-10-24T17:16:14","modified_gmt":"2017-10-24T22:16:14","slug":"liquidity-provider-signals-collapse-in-global-etf-trading","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=27203","title":{"rendered":"Liquidity Provider Signals Collapse In Global ETF Trading\u00a0"},"content":{"rendered":"

Liquidity Provider Signals Collapse In Global ETF Trading\u00a0<\/span><\/a><\/h3>\n
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Trading in low cost, passive investment products might be more vulnerable than some thought. Global ETF trading collapsed by 14% in Q3 2017 versus Q2 2017<\/strong> \u2013 and was described as \u201cunusually slow\u201d. <\/strong>Global ETF trading in September 2017 was 24% lower than the same month a year ago<\/strong>.<\/p>\n

For those unfamiliar, Flow Traders NV is a global electronic liquidity provider specializing in exchange-traded products (ETPs). <\/strong>The Company continuously quotes bid and ask prices for ETPs listed across the globe, both on and off exchange, in all asset classes. Flow Traders is a proprietary trading firm with offices in the Netherlands, Singapore, the USA, and Romania.<\/p>\n

Today\u2019s results from specialized ETF trader, Flow Traders NV (Euronext: FLOW), fell well short of consensus, with trading volume both for the company and the ETF market significantly lower in Q3 2017 versus the previous quarter. The share price rose 1.98%. This from Bloomberg:<\/p>\n

[24 October 2017 at 13:54:31 UTC+1] Zero Hedge: <\/strong>Flow Traders Misses on Weak Volumes, Margins]<\/strong><\/p>\n

Flow Traders 3Q Ebitda was 14% below consensus and driven by weaker volumes and margins in Europe, says Morgan Stanley (equal weight).<\/p>\n