Bad Liquidity or Bad Markets? Traders Weigh in on Stock Tumult
- A Goldman Sachs study from Dec. 18 saw thinning order books
- Market infrastructure gets tested in an extremely rough week
The New York Stock Exchange.
Photographer: Michael Nagle/Bloomberg
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Seeing prices run away is part of doing business in smaller stocks. Seeing it happen when he was trying to fill an order in blue chips recently was something unusual for Beltran de la Lastra.
“If you go into the large caps and you try to do a significant trade -– let’s say in a big fund company of $200 billion you’re trying to do a $50 million clip, a $100 million clip -– you should be able to do it fairly quickly,” said de la Lastra, chief investment officer at Spanish asset manager Bestinver Gestion. “The reality is that you may have to be working on it for a few days.”