Liquidity Landscape April 14, 2020

As the Covid-19 crisis continues and the industry adjusts to the new normal, the ability to execute successfully is critical.  Recent widening of spreads and increased volatility make timing risk more significant, accentuating liquidity risk.  Liquidity (represented by the number of shares at the top of the book) is still lower than pre Covid-19 (proxied by a January average) however, this is beginning to rise on the EU and UK main indices. The S&P500 was still trading at a 30% discount compared to January.

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Compiled by Rebecca Healey, Global Head of Market Structure + Strategy, Gareth Exton and Joe Fields, Global Execution + Quantitative Services