Paging Liquidity

Terry Flanagan

Trading volumes are lower across most financial markets, and market structures are more complex. The combination has made sourcing liquidity especially challenging for the buy side, at a time when protecting return in an alpha-scarce market is critical.

Dmitry Bulkin spends his days working on this challenge as director and head of liquidity strategy for equity trading at Credit Suisse, a leading Wall Street firm.

Bulkin joined Credit Suisse’s Advanced Execution Services group in 2003 from Kiodex, an energy-derivatives firm, where he managed the firm’s product development. Prior to Kiodex, Bulkin was at Credit Suisse First Boston, where he worked on a system to electronically trade government bonds. Mr. Bulkin earned a B.S. in mathematics from the University of Minnesota.

Markets Media interviewed Bulkin via telephone on March 19.

Markets Media: Briefly discuss your role/function as head of liquidity strategy.

Dmitry Bulkin:  I’ve been with Credit Suisse for ten years, mostly working on algorithmic development. Recently I took a new role as the head of liquidity strategy for the equities trading department. In this role, I am responsible for managing relationships with the firm’s liquidity providers and partners, such as exchanges, alternative trading systems and other broker-dealers. I’m also deeply involved in managing our two alternative trading systems, Light Pool and Crossfinder, and I participate in forming our market-structure policies — that is, anything and everything that has to do with market structure.

MM: How would you characterize institutional markets currently in terms of liquidity, and how has that changed over the past few years?

DB: In general, institutional investors are finding that their execution costs are very low by historical standards, and spreads are tighter. But of course there are some challenges, especially moving low-cap and less liquid names, and a lot of people are concerned about the general complexity of the markets and equity market structure.

MM: What are the main challenges for the buy side in sourcing liquidity?



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