Quant Opinion: Liquidity Centers Are the First Step Toward Industry Utilities

(Last Updated On: January 30, 2012)
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Quant Opinion: Liquidity Centers Are the First Step Toward Industry Utilities

Liquidity centers will eventually become liquidity and utility centers for the equities markets.

Perhaps the term “liquidity center” is hype, Orwellian double-speak masking the fact that liquidity is no longer centered anywhere. Perhaps it is just clever marketing — a way to make data center sales sexier. Or perhaps it represents the opportunity to create the next-generation financial center.




There are parallels between what occurred in U.S. equity markets over the past decade and the opposing fates of city and suburban populations. Cities suffered net losses, in part because newly built infrastructure and transportation enabled worker mobility. In equities trading, cheap bandwidth, storage and computational power — coupled with well-documented regulatory mandates — allowed liquidity to shift to an increasing number of disparate execution venues. In the short-term, everything seemed swell: Kids had bigger backyards and spreads tightened.



NOTE I now post my TRADING ALERTS into my personal FACEBOOK ACCOUNT and TWITTER. Don't worry as I don't post stupid cat videos or what I eat!
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About caustic

Hi i there My name is Bryan Downing. I am part of a company called QuantLabs.Net This is specifically a company with a high profile blog about technology, trading, financial, investment, quant, etc. It posts things on how to do job interviews with large companies like Morgan Stanley, Bloomberg, Citibank, and IBM. It also posts different unique tips and tricks on Java, C++, or C programming. It posts about different techniques in learning about Matlab and building models or strategies. There is a lot here if you are into venturing into the financial world like quant or technical analysis. It also discusses the future generation of trading and programming Specialties: C++, Java, C#, Matlab, quant, models, strategies, technical analysis, linux, windows P.S. I have been known to be the worst typist. Do not be offended by it as I like to bang stuff out and put priorty of what I do over typing. Maybe one day I can get a full time copy editor to help out. Do note I prefer videos as they are much easier to produce so check out my many video at youtube.com/quantlabs