Current market practice is limiting the growth of exchange-traded funds (ETFs), according to a report by TRADE, which said ETFs should be distinguished from other asset classes. It said employing the same trading methods for ETFs as for other equities often led to suboptimal executions and that algorithms and transaction cost-analysis systems in use had been designed for single-stock trading and not specifically for ETFs.
Current market practice is limiting the growth of exchange-traded funds (ETFs), according to a report by Greenwich Associates, which said ETFs should be distinguished from other asset classes. It said employing the same trading methods for ETFs as for other equities often led to suboptimal executions and that algorithms and transaction cost-analysis systems in use had been designed for single-stock trading and not specifically for ETFs.