Wednesday, June 26, 2013

Stop! Top Firm Gains by Putting the Brakes on Traders


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According to Dealbook the spoils on Wall Street generally go to the firm that is the fastest and most opaque. But one upstart contender is trying a distinctly counterintuitive approach.

In the financial equivalent of the Tortoise and the Hare, Royal Bank of Canada has risen up the ranks of the biggest stock trading firms in the United States by embracing a rather Canadian restraint and prudence.  At the center of the efforts by the bank’s New York trading desk is a technology that actually slows its customers’ orders so as to evade high frequency traders. And unlike nearly every other large bank in New York, it has elected not to open its own dark pool, where banks privately carry out customer trades away from the public exchanges…...


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