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"So, You Think You Can Trade Closed-End Funds, Eh?"

posted by CAPIS on 10/08/2020 at 10:56 am

by CAPIS

10/08/2020 at 10:56 am

This article was penned by Russell Robinson

 

In an age of technological advancements, there is at least one market where technology is yet to take hold.  Trading closed-end funds on an institutional level.

In the equity markets, it is fair to say that if you run institutional money, you have access to a wide array of trading algorithms to automate and manage your orders.

Where this notion falls short, is with Closed-End Funds. How so, you may ask? Within ~500 Closed-End Funds that can be traded in the secondary markets, only about half have an average daily volume of greater than 50,000 shares. And much of the volume that is traded is crossed in blocks, rendering standard trading algorithms useless.Russell Robinson headshot

So, where does one turn to effectively transact in this market? Ideally, you would find a firm that has the CEF experience and natural order flow to cross large blocks.

Have you considered CAPIS?  With 40 years’ experience and a trading desk that boasts an average tenure of over 20 years, CAPIS has the experience to bring institutional CEF clients together.  Trading for some of the largest CEF managers on a daily basis, CAPIS provides access to natural liquidity.   That’s the CAPIS Difference.

For more information on trading Closed-End Funds at CAPIS, please contact Russell Robinson at 214.978.4731 or via email at rrobinson@capis.com.

For questions or to learn more about CAPIS, please reach out to trading@capis.com, and follow us on Twitter (@capisinc) and LinkedIn for more updates and insight from our team.

 

 

 

 

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