Agency focused global brokerage and trading related services provider, Convergex, has revealed that its ETF Direct platform reached new monthly trading highs for March 2017 when notional value reached USD1.25 billion, a 40 per cent increase over the previous record month of December 2016, when notional value was over USD897 million.
In addition, March 2017 share volume also set a new monthly record with 18,717,816 shares traded. Launched in early 2016, ETF Direct is a request for quote (RFQ) platform that streamlines the process for firms requesting block sized quotes in illiquid ETFs from numerous liquidity providers.
• For the month of March 2017, the average notional trade size reached a new high of approximately USD7.4 million, the largest single trading month since September 2016 when the average notional trade size was almost USD6.7 million;
• During March 2017, the average ETF trade size was over 110,000 shares;
• On March 28, 2017, ETF Direct facilitated the largest single trade since its inception of 2.2 million shares with a value of USD140 million;
• ETF Direct’s weighted average trade size as a percentage of industry average daily volume was 45.4 per cent for the month of March; and
• For the month of March 2017, average slippage measured vs. arrival price (midpoint) was 3.09 bps vs. an average spread of 2.50 bps, less than 1.9 bps from the touch.
“ETF Direct is providing real value for our clients, enabling them to source multiple quotes in both liquid and less-liquid ETFs. In fact, ETF Direct is especially useful in finding liquidity for ETFs that typically trade less than 6 million shares a day,” says Eric W. Noll (pictured), Convergex President and CEO.