January 17, 2023 | Stamford, CT — Upstarts with claims of next-generation algorithmic platforms are driving innovation in European equity markets by pushing incumbent brokers to keep pace by updating and upgrading legacy offerings.

The continued growth of electronic trading and an influx of new entrants and trading alternatives has brought competition in the European equities business to cutthroat levels. 

“The good news for the buy side is that it is vital for Europe’s major brokers to ensure their platforms are aligned with the fast-changing needs of their clients and prospects,” says Jesse Forster, Senior Analyst at Coalition Greenwich Market Structure & Technology and author of Trends in European Equity E-Trading: What the Buy Side Really Wants—and Pays For.

The buy side is clear about what it wants from equity brokers—especially in the increasingly important area of algorithms. In a recent Coalition Greenwich study three quarters of European equity traders name ease of use, reliability and quality of technical support as their top criteria when selecting algo platforms. To meet that demand, brokers are launching new offerings at a rapid pace in an effort to differentiate themselves from their competitors. 

Equity traders often need help navigating the increasingly broad and complex universe of algorithmic trading. In fact, even within individual brokerages the launch of so many new products risks making platforms overcomplicated and with every update, buy-side traders are forced to gain familiarity with new options. 

Best-in-class brokers are helping clients deal with those challenges by supplementing technical innovation with advisory and consultancy capabilities to help clients understand and employ their platforms. 

“Brokers who are able to most effectively balance both the human and technological elements of algorithmic trading will come out on top, particularly among sought-after, high-commission-paying asset managers,” says Jesse Forster.

Trends in European Equity E-Trading: What the Buy Side Really Wants—and Pays For examines the trends driving innovation in European equity markets and details the specific attributes and features of sell-side electronic equities platforms that European asset managers value most, how they trade today and the preferences that will likely impact their routing decisions in the future.