Emerging Markets

Discussion in 'Order Execution' started by qazmax, Jun 16, 2006.

  1. qazmax


    I am curious if anyone trading directly on any of the emerging markets would like to explain any differences in execution compared to the US markets.


  2. nealvan


    That's a good question.. I presume your refering to China and India.. I'd like to know the answer to that as well..
  3. qazmax


    I mean all emerging markets. From Argentina to Zimbabwe (sp.) I wanted an A and a Z country name but I doubt Zimbabwe has a stock exchange.

    I am curious how trading experience in the US may or may not parlay into valued experience in trading the emerging markets.

    I was hoping someone might have worked on emerging market trading desk and share some of their work experience.

  4. I've worked with traders in emerging markets and my strong impression is that each market is very different, generally speaking.

    But not in the ways you might think. For instance, out in Asia you don't have silly games played by market makers as the exchanges are fully electronic. That said, liquidity is often an issue and there are inumerable ways that local players and offshore hedge funds can game a small market/stock ala Livermore back in the day. Some of the maneuvers can be fairly obvious. Also, insider trading, including companies self dealing in their own stock and stock of subsidiaries, competitors, customers and suppliers is also common.

    As such, traders must specialize by country - work on a desk in country for a few years in order to learn the ropes.

    Thus, answering your sweeping question is likely all but impossible. If you were to ask about a specific market it is also unlikely someone knowledgeable on that market would be here on ET.
  5. alanm


    Quote from qazmax:
    ...but I doubt Zimbabwe has a stock exchange.

    http://www.zse.co.zw/ :)

    Actually, many developing countries have stock exchanges, albeit with very short trading days, very few listed companies, small total cap, etc. Some are really nothing more than a couple banks/dealers trading OTC out of the same office space, or even by phone with no central market (ala OTCBB).

    Like Blue said, for the most part, you don't want any part of them.
  6. nealvan


    It sounds like it's hard to get in on these markets that are not listed on our exchanges..
  7. qazmax


    Yes, I made it sweeping so I would not limit the responses. I do see your point of the different market places having many nuances. So thanks for the general answer and your input. It is nice when people take time to educate the rest of us.

    More specifically I have some various questions... how do people connect with these markets? How do you find market makers on these stocks to call? What software do you use to connect to the exchanges which are electronic? Are the exchange rules similar to US exchange rules? Where do the trades clear?

    As for specific exchanges, I was especially curious about Argentina, Brazil, Singapore and India. So if anyone cares to elaborate specifically on any of these that would be great!!

    Thanks in advance for time spent answering...
  8. qazmax


    I knew someone was going to post this... I did not want to take the time to Yahoo it before I posted.

    Have you traded on this market? Is there anything else of interest to this market place?

    Good stuff!!
  9. alanm


    No, I haven't. I've had some input by people with experience in some of those markets.

    Google for +country_name +"stock exchange" (or other synonyms for it), go to the exchange website where there is usually a list of brokers, contact/visit the website of the brokers.

    And don't forget to lube up. :)
  10. the diff between an developed country and an emerging one is its share market.
    this is the reason why wall street assumes such significance in the current busines scenario in the emerning world.

    #10     Jun 20, 2006