Titan AM’s Livingstone on future ETF trading developments in Europe

Trading at risk can lead to information leakage

Tom Eckett

Alex Livingstone, head of trading – FX and ETFs at Titan Asset Management, has warned investors should look at alternative ETF execution options to risk when trading larger sizes.

In a recent ETF Stream webinar, titled ETF Investigations: Pre-hedging or frontrunning: Are ETF Investors losing out?, Livingstone said execution practices such as using an agency or an ETF algorithm will see greater usage in the coming years as investors become more sophisticated.

However, he stressed the risk transfer approach in request-for-quote (RFQ) platforms will remain the favoured execution practice in Europe due to its immediacy.

“Risk will remain prominent within the ETF industry,” Livingstone continued. “However, for larger sizes, I see greater sophistication in the coming years.”

The comments come after BlackRock produced research warning about the impact of “information leakage” when trading ETFs in Europe.

Speakers in this webinar include:

  • John Keogh, managing director, Susquehanna International Securities

  • Jamie Hartley, European head of capital markets, DWS

  • Alex Livingstone, head of trading – FX & ETFs, Titan Asset Management

ETF Investigations is a new webinar series from ETF Stream which examines the key issues facing ETF investors in Europe. To watch a full replay of this webinar, click here.


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