‘Liquidity in the Time of Covid’ – Download the report

‘Liquidity in the Time of Covid’ – Download the report

by | Sep 27, 2021 | Reports

Covid-19 continues to redefine the trading landscape in Europe. Changes in liquidity formation already in play due to the increased use of automated trading and rise of passive investing were accelerated
as traders rushed to make changes to investment strategies due to the pandemic. Remote working, greater reliance on cloud technology and the high volatility early in the pandemic created new additional challenges which is resulting in the industry rethinking trading partners and access points to liquidity.

The study is written by independent financial services research group Redlap Consulting. It was commissioned by FIA EPTA, which represents Europe’s leading market making firms, to drive greater understanding of what independent market making firms do, and their contribution to both financial markets and the wider economy.

Redlap Consulting conducted interviews with 30 Global Heads of Trading at asset managers with $35.6 trillion (€30.36trn, £25.9trn) in assets.

Report author Rebecca Healey, founder of Redlap Consulting, said:

“Covid-19 continues to redefine the trading landscape as the pandemic lifted the veil on the role market-makers can play in liquidity formation. Liquidity challenges in bond markets early in the pandemic created a vacuum forcing the buy-side, to find new trading partners and access points to liquidity – and market making firms stepped up to fill the void. Now as asset managers continue to partner more directly with these firms, they have been able to benefit from a wider, more diverse pool of counterparties in how and where they can execute investment strategies; while liquidity providers have the opportunity to re-position themselves and build new partnerships.”

The FIA European Principal Traders Association (FIA EPTA) represents Europe’s leading Principal Trading Firms. Its 30 members are independent market makers and providers of liquidity and risk transfer for end-investors across Europe. It works constructively with policymakers, regulators and other market stakeholders to ensure efficient, resilient, high-quality financial markets. To find out more visit fia.org/epta

The report is the first of three being produced to mark FIA EPTA’s 10th anniversary which is being marked by a new campaign to drive greater understanding of what independent market making firms do, and their contribution to both financial markets and the wider economy.

Download the report
#WeAreMarketMakers Campaign Launched To Promote Better Understanding Of Market Making Firms In Europe

#WeAreMarketMakers Campaign Launched To Promote Better Understanding Of Market Making Firms In Europe

by | Sep 27, 2021 | Press releases

London 27 September 2021

A new campaign to promote better understanding of modern market making, what it does and its benefits for wider society, has been launched today.

#WeAreMarketMakers is a campaign by FIA EPTA, the European industry body for independent market making companies, as part of its 10th Anniversary activities. The project is not only supported by FIA EPTA’s 30 member firms, but also by others in the markets community that work directly with and alongside the industry.

The campaign seeks to help inform and educate stakeholders on the important role that market makers play: from providing liquidity to the global financial markets, to supporting citizens’ pension pots.

It also aims to debunk some of the myths surrounding the industry, and put forward the people and innovators behind the industry.

The #WeAreMarketMakers campaign will be led through an integrated communications campaign and built around a series of independently-produced thought leadership reports looking into liquidity provision, innovation and sustainable finance.

The first report – Liquidity in the Time of Covid1 – is being launched next Monday with a panel discussion at the International Derivatives Expo (IDX) conference in London. It focuses on the impact of the pandemic on liquidity provision and how market makers played a vital role supporting asset managers.

The campaign will also create a new microsite about the sector, explaining what it does and its contribution, with news articles, blogs and videos as well as data and facts about the industry. The campaign website goes into detail about how market makers benefit everyone in society, from pensioners, farmers, businesses and even governments.

Notes to editors 

  1. Liquidity in the time of Covid – a report by Redlap Consulting 

“Our industry can sometimes be hard to grasp and our presence and impact is not always obvious – but we are always present in the markets and have been fundamental to the resilience of European financial markets, including throughout the Covid-19 pandemic.

We are excited to bring our ten-year run of engagement with stakeholders to a new level with this campaign, and are keen to reach new audiences to make them aware of the tremendous contribution of market makers to well-functioning markets that benefit everyone in society.”

– Mark Spanbroek, Chairman of FIA EPTA
Building New Liquidity Partnerships – The View from the Buy Side

Building New Liquidity Partnerships – The View from the Buy Side

by | Sep 27, 2021 | Articles

A liquidity drought in Europe’s bond markets in the early stages of the Covid-19 pandemic accelerated a structural shift in how asset managers engage with independent market making firms and see them increasingly as trusted partners.

These are the headline findings of a new independent study into the impact of Covid on capital markets by Redlap Consulting, a specialist research firm.

The study, Building New Liquidity Partnerships – The View from the Buy Side’, will be discussed at the International Derivatives Expo in London on September 27th. It is based on interviews with 30 Global Heads of Trading at EU and UK asset management firms with over $35 trillion of assets under management.

Rebecca Healey, Managing Partner of Redlap Consulting, will moderate the panel discussion, which will feature Piebe Teeboom, Secretary General of FIA EPTA, Robert Miller, Execution Consultant from Vanguard Asset Management and Andy Mahoney, Managing Director of FlexTrade Systems.

The discussion will look at how Covid-19 continues to redefine the trading landscape as remote working, greater reliance on cloud technology and the high volatility early in the pandemic impacted how the buy side accessed liquidity.

And why today asset managers are looking to benefit from a wider, and more diverse, pool of counterparties to create greater optionality in how they can execute their investment strategies.

The session will shed light on what changes buy-side firms are making, which trends are here to stay, and who will the trading partners of the future be.

The report, which will be released publicly on September 28th, is part of a new campaign about the market making community, called #WeAreMarketMakers, led by FIA EPTA.