Death of a Sales Trader: Cause of Death: Block Trading
This manuscript seeks to determine the future of the block trade as well as the institutional sales trader. It does so first through the review of all relevant literature on the block trade and sales trader. The block trade, algorithmic trading, high frequency trading, alternative trading systems and regulations are the factors researched. The paper then reviews interviews conducted specially for the study. Five institutional stock traders were interviewed; four from JonesTrading, and one from Cantor Fitzgerald. After thorough reporting and analysis of the results, the manuscript concludes. The conclusion is that fragmentation and lack of transparency has been hurting the block trade and the institutional sales trader. The block trade however will not disappear, and cause the sales trader to go extinct. The sales trader will instead fall victim to evolution and progress in the next 10-20 years.