Boston, MA, June 4, 2008
– A new report from Aite Group, LLC provides an understanding
of equity market structure and the factors that influence trading
strategy. The report examines how regulation and technology have
shaped the equity market, how trading strategy considerations impact
order routing, and how industry structure can limit the effectiveness
of some commonly employed business strategies and tactics.
U.S. equity market structure has evolved substantially over the past 40 years. Manual, highly centralized and
non-transparent through the late 1960s, the market has evolved into a highly automated and fragmented assortment of venues providing
an array of execution alternatives. The trader's ability to compare the value provided by one market center to that of another is,
at best, limited. Subjectivity, imprecision and interpretive differences concerning factors that affect order flow can render the
market an unclear mix of indistinguishable offerings.
"The combination of market structure, order-routing decisions and industry-specific factors, taken together, have
a profound impact on a market center's business operations and ability to succeed," says
Matt Samelson, senior analyst with
Aite Group and author of this report. "Successful business strategy is predicated upon a clear understanding of these elements,
which may reveal more beneficial but less obvious strategic alternatives in favor of certain generally accepted practices."
This 47-page Impact Report contains five figures and three tables. Clients of Aite Group's Institutional
Securities & Investments service can download the report by clicking on the icon to the
right. 
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