Hedge Fund Managers Anticipate Higher U.S. Equity Trading Volumes in 2010, TABB Group Report Finds

A recent report by financial markets research and strategic advisory firm TABB Group found that the hedge fund industry is poised for significant growth during the remainder of 2010 in terms of assets under management (AUM) and equity trading volumes.  The report, entitled “U.S. Hedge Fund Equity Trading 2010: Commissions, Volumes and Traders,” forecast that industry AUM will reach $1.8 trillion by the end of this year, and that equity trading volumes will rebound significantly from their credit crisis lull, augmented by an increased use of leverage.  In a recent webinar, Matt Simon, a TABB Group Analyst and author of the report, discussed the report and its findings.  This article summarizes those findings, which include: expected increases in hedge fund trading volumes; decreases in the number of execution traders on hedge fund trading desks; increases in use of dark pools, algorithms and direct market access (DMA) by hedge funds for equity trades; and anticipated increases in commissions for broker-dealers.

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