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Picking Up the Pieces

Traders Deal with Fragmentation of Marketplace Liquidity

Traders Magazine, April 2008

James Ramage

The scenario sounds simple. You're an institutional buyside trader who just got an order to sell 100,000 shares of an illiquid name at a specific price as soon as possible. Where do you begin? Maybe 10 years ago you'd have shipped it to the New York Stock Exchange floor, where for decades 80 percent of all of its shares traded. But because the market's now far more fragmented, just under 40 percent of listed stocks trade there. So, do you execute it yourself or call a broker? If you handle it yourself, as more of the buyside is, you're faced with a plethora

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