Interview with Martin J Ekers, Head of Dealing, Northern Trust Global Investments 1. A lot of buy side and brokerage firms haven't yet adjusted to the "new state of normal" on the markets. Have you? How long do you think the industry will take to adjust? A. Adjustment is a continuous ongoing process so it’s difficult to put a time frame around my response. What is clear is that many firms are expecting or hoping that things go back to the 2007 status quo which to my mind is very unlikely to happen. 2. High Frequency Trading - does it create noise and volatility or does it provide the all important liquidity to reduce volatility? A. I’m sure there are occasions when HFT does neither and other times it does both. It’s important to stress that if you believe in an open market then they have just as much right to conduct their strategies as a “long only” pension fund, or a day trading individual. It is absolutely right that the regulators examine any new phenomenon that manifests itself, but we should not try to restrict technological advances. 3. Regulators - who should they be trying to protect and how? What is your expectation from the upcoming regulation of the capital markets? A. They should try and protect the integrity of capital markets and worry less about the individual (who should be protected by their advisor or stockbroker). My fear for upcoming regulation is that they may try to restrict activities that they do not fully understand. They may also demand unrealistic and unproductive reporting of transactions to no benefit and some cost. 4. If you had a magic wand and could change one thing in the ways markets operate, what would you do? A. Concentrate and deepen market liquidity. The largest equity capital market in the world is open for 6 ½ hours a day, for five days of the week. Transactions can of course be done at any time, but proper price formation and liquidity discovery to enable trading takes place for just this period of time. Why do European markets insist on degrading the quality of their market place by stretching out trading for so long? Why do orders get stretched out for so long? A “chicken and egg” question undoubtedly, but one that can be easily resolved.

Interview with Martin Ekers TradeTech Europe 2011 conference

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TradeTech Europe 2011 is the largest and most senior meeting place for the electronic trading community. It gathers over 2,000 buy side traders, brokers, trading venues, regulators, industry experts, economists and fund managers. It is created by the industry advisory board and is highly valued by all participants. TradeTech is designed to give you true value and help you grow in your job, ensuring top results and great performance for every member of your team. The work on the conference agenda is full steam ahead. We are interviewing hundreds of your colleagues and peers from buy side institutions across the globe to find out exactly what they would like to take away from the conference agenda and the exhibition floor. Contact us on +44 (0)20 7368 9465 or [email protected] to register for your complimentary buyside pass, or secure your early bird ticket - saving you over £1000!

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Page 1: Interview with Martin Ekers TradeTech Europe 2011 conference

Interview with Martin J Ekers, Head of Dealing, Northern Trust Global Investments

1. A lot of buy side and brokerage firms haven't yet adjusted to the "new state of normal" on the markets. Have you? How long do you think the industry will take to adjust?

A. Adjustment is a continuous ongoing process so it’s difficult to put a time frame around my response. What is clear is that many firms are expecting or hoping that things go back to the 2007 status quo which to my mind is very unlikely to happen.

2. High Frequency Trading - does it create noise and volatility or does it provide the all important liquidity to reduce volatility?

A. I’m sure there are occasions when HFT does neither and other times it does both. It’s important to stress that if you believe in an open market then they have just as much right to conduct their strategies as a “long only” pension fund, or a day trading individual. It is absolutely right that the regulators examine any new phenomenon that manifests itself, but we should not try to restrict technological advances.

3. Regulators - who should they be trying to protect and how? What is your expectation from the upcoming regulation of the capital markets?

A. They should try and protect the integrity of capital markets and worry less about the individual (who should be protected by their advisor or stockbroker). My fear for upcoming regulation is that they may try to restrict activities that they do not fully understand. They may also demand unrealistic and unproductive reporting of transactions to no benefit and some cost.

4. If you had a magic wand and could change one thing in the ways markets operate, what would you do?

A. Concentrate and deepen market liquidity. The largest equity capital market in the world is open for 6 ½ hours a day, for five days of the week. Transactions can of course be done at any time, but proper price formation and liquidity discovery to enable trading takes place for just this period of time. Why do European markets insist on degrading the quality of their market place by stretching out trading for so long? Why do orders get stretched out for so long? A “chicken and egg” question undoubtedly, but one that can be easily resolved.