The coronavirus pandemic brought unprecedented volatility levels to the market, which caused many stock indices to sink. This fueled a spike in trading activity across March 2020. As the new Trading InfoSnack Liquidity under the Volatility Microscope highlights, the surge in liquidity observed on major European primary exchanges was disproportionate across key trading sectors. As a result of increased volatility, spreads widened on all primary exchanges but to a varying degrees.
How has the surge in trading activity across Europe in H1 2020 manifested itself differently across venues in terms of the impact on liquidity, spreads and depth? What role have short-selling bans played? Was matching technology a factor in the way liquidity shaped in Europe? Answers on these questions and analysis on further aspects such as liquidity concentration and trading incentives are provided in the new article from the Equity experts of the Swiss Stock Exchange.
Insights on Relevant Trading and Market Structure Topics
The Trading InfoSnack articles are brief but insightful research features that provide commentary on market relevant trends, models and microstructure that influence the trading of Swiss securities, underpinned by in-depth analysis from the Equities team of the Swiss Stock Exchange.
Whilst the specific focus of Trading InfoSnacks will be on the trading of Swiss securities, the approaches and perspectives constructed also have more broad application across the EU securities trading landscape. To trading and market structure professionals with a focus on the EMEA region the previous Trading InfoSnacks are also of interest: Closing Auctions: What’s Hanging in the Balance?, Back to the Future(s) und What’s in a Liquidity Smile?
Where Quality Comes as Standard
At the Swiss Stock Exchange, quality comes as standard. This applies to the performance and stability of our trading infrastructure, the liquidity, prices and spreads in our order books and our services in the listing, trading and post-trading space. As the clear reference market for all SMI shares, the Swiss Stock Exchange gives you the highest liquidity, the best prices and the tightest spreads. Find out more.