Despite their expanding popularity for both crypto and equities, there is a trade-off that comes with using off-exchanges which investors must consider. The lack of transparency that is associated with these private platforms is often cited as a potential problem because it is perceived to affect the ability to get the best price. In his bestseller “Flash Boys: A Wall Street Revolt” author Michael Lewis lays out some of the predatory tactics used by HFTs to front-run large block trades performed in off-exchanges.
Liz Kiesche, SA News Editor – “Portfolio managers should integrate ESG in portfolio management, including security selection, portfolio construction, risk management, performance attribution, and client reporting.”
Larry Tabb TABB Group – “with a new governance structure, a new and better consolidated tape could tackle some major issues: … Reducing the latency associated with how data is aggregated, normalized, and redistributed. … Increase the depth-of-book levels incorporated in the consolidated tape … Fix or revise the professional versus non-professional definitions that determine how much a firm needs to pay the SIP per user. … Putting odd-lot quotes into the consolidated quote. “
[Editors Note: Read between the lines of investment advice for the trend]
Bridger Research – “MSCI is the sole leader with the most technically advanced products in the ESG related portfolio construction and analytics market”