Commentary

Brett Cenkus
Traders Magazine Online News

President Trump Won't Kill America, Bitcoin Will

In this blog, the author examines how the global cryptocurrency adds one more piece of the pie to a radical shift in the structure of worldwide governance.

Traders Poll

Would the creation of a single central regulator in Canada affect your inter-listed trading strategies?




Free Site Registration

November 11, 2008

What's Next for Volume?

By James Ramage

Traders during the recent downturn have seen equity trading levels hit unprecedented volumes. But how will the correction affect future volume? That was discussed at this year's Security Traders Association's annual conference last month. Case in point: After the 2001 correction, volumes took a powder for the next two years.

Potential reasons for a volume slowdown in coming months include: less hedge fund activity, as they deleverage; long-only institutions and retail sitting out after being burned; and investment banks prop desks being less active.

Still, not everyone is convinced a trading slowdown is coming. One argument for continued strong volume is that investors in derivatives might seek safety in equities. As one longtime sellside trader summed up his concerns: "Trading volume went up so much from normal, my fear is that volume could just as easily go down that much from the norm."

(c) 2008 Traders Magazine and SourceMedia, Inc. All Rights Reserved.

http://www.tradersmagazine.com http://www.sourcemedia.com/