2015 Canadian Market Structure Forecast
2015 is shaping up to be a challenging year for those trying to capture liquidity in the Canadian equity markets. A sharp selloff in oil late in 2014 has largely emptied the pipeline of financing deals in the energy sector. This will challenge dealer profits, and almost certainly reduce the ability of all but the largest dealers to put up facilitation capital. At the same time continued evolution in the structure of our markets, in the form of new markets, new rules and significant changes to existing markets, will provide short to medium term advantages to the small number of proprietary and agency firms truly capable of understanding and adapting to such evolution. Changes to the TSX MOC facility, Alpha, MATCH Now℠, and the Order Protection and Dark rules, along with the introduction of two trading books at Aequitas in Q1, will force traders to once again spend more time on understanding market structure than they may prefer. If there is an underlying theme for 2015 it is the continued evolution and complication of market structure to the advantage of those that invest time and the disadvantage of those that do not.
Without further ado, we present out list of forecasts for 2015.