Meeting The Needs Of a Fast Growing Trading World
Global stock markets have changed dramatically in the past decade, characterized by:
- The overtaking of traditional securities analysis by quantitative analysis techniques;
- The rapid rise of high frequency trading facilitated by large, high speed computer systems;
- The continuing growth of “dark pools,” private equity firms and hedge funds.
These changes have brought a sea change in the capital market. It’s estimated that high frequency trading now accounts for as much as 70 percent of U.S. consolidated trading volume every day. In the U.K. it exceeds 75 percent of daily trading volume and in Europe it’s approaching 40 percent.1
What are public companies to do if brokerages and financial firms are more interested in generating trading profits than investing in corporations? What does this mean for companies seeking to raise capital? Who cares about corporate messaging?
The solution is to dig deeper with investor relations. There are institutions that still invest for the longer term, for value and price appreciation over time.
BIA Investor Relations can help companies find these institutional investors by:
- Helping develop strategic messaging that will persuade potential investors of their viability as a long-term investment;
- Targeting institutions at a granular level to find those that still look for value or growth investments;
- Using our proven network of buy-side managers to bring companies together with potential long-term shareholders.
- ”The Impact of High-Frequency Trading on Markets,” CFA Magazine, March-April 2011