The U.S. Equities Market report includes U.S. equity institutional revenue cut three ways (total, execution only and low-touch), market participant volumes, execution-venue market share, high- frequency trading revenue, mutual fund flows, leveraged US equity volumes and other key data.
Among the report’s key findings:
- High-frequency trading as a percentage of volume is expected to rise to 52% in 2013
- TABB projects HFT will generate $2 billion in revenue in 2013 in US equities
- Market share for off-exchange trading volume, pegged at 33% in 2012, is likely to increase in 2013
- Although the fourth quarter of 2012 saw an increase in block crossing, it is too soon to project whether this type of growth will continue
- U.S. institutional equity brokerage commissions are forecast to rise 9% in 2013.
From an investor’s standpoint, it is difficult to complain about the performance of the market in 2012, states Adam Sussman, a TABB partner, director of research and author of the new report. “Despite the incredible decline in volatility since September 2011, correlations remain relatively higher, particularly compared to the historical relationship between VIX and ICX prior to 2008. Until the market exhibits less correlation, we don’t expect a tremendous increase in institutional active equity trading activity.”