How Kitchen Table Trading Changed the Face of Markets

The past year has brought about a revolution in the public markets. With the pandemic and lockdowns turning everyone’s kitchen table into a trading desk, buying and selling has been moving from the New York Stock Exchange to Nasdaq to off-exchange venues. Meanwhile, the electronic trading boom isn’t just happening with equities, but credit too. Welcome to the new marketplace. 

Taking It to the Street

Reddit’s WallStreetBets forum attracted millions of new subscribers in January. Online traders communicating there pushed up shares of GameStop Corp. in a bid to turn the tables on the hedge funds that were short-selling the video game retailer.

How Kitchen Table Trading Changed the Face of Markets

Pros vs. Amateurs

Newbies’ forays into meme stocks added to retail’s portion of equity volume.

How Kitchen Table Trading Changed the Face of Markets

What Retail Traders Bought and Sold

Amateur market participants were relatively active in industrial companies in 2020, according to Vanda Research, which looked at their trading in Russell 3000 sectors.

How Kitchen Table Trading Changed the Face of Markets

Trading Places

Trading of lower-priced stocks has shifted activity from the NYSE to Nasdaq.

How Kitchen Table Trading Changed the Face of Markets

Off-Exchange Soars

Over-the-counter trading took off in 2021, rising to well above historical norms.

How Kitchen Table Trading Changed the Face of Markets

Where Furious Trading Amounted to Little

More shares of nonlisted than listed companies were traded in February, but the value of shares traded on exchanges remained far greater.

How Kitchen Table Trading Changed the Face of Markets

The New Thrift Market

In the last week of January, low-priced stocks accounted for more volume than they did at the same point last year.

How Kitchen Table Trading Changed the Face of Markets

Credit Goes Electronic

It’s not just equities that are changing. Electronic bond trading soared in 2020.

How Kitchen Table Trading Changed the Face of Markets

Treasuries’ Big Three

Established players control the majority of electronic Treasuries trading.

How Kitchen Table Trading Changed the Face of Markets

For Active-Fund Managers, a Respite or Time for a Comeback?

The gap between the best- and worst-performing sectors has widened since the onset of the pandemic. This should give active managers the opportunity to outperform their benchmark as they skew portfolios toward winning sectors and away from losing ones.

How Kitchen Table Trading Changed the Face of Markets

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