New research from Greenwich Associates suggests that the long-awaited Great Rotation of assets out of fixed income following an uptick in interest rates will not necessarily reverse the long-term decline in institutional trading activity in U.S. equities. In this report, Greenwich Associates examines the reasons why trading volumes have fallen in U.S. equities and provides projections about future levels of market turnover. The report also analyzes the impact that the slowdown has had on U.S. equity market participants thus far and how it will likely affect market participants going forward. MethodologyBetween December 2012 and February 2013, Greenwich Associates interviewed 217 U.S. equity fund managers and 294 U.S. equity traders at buy-side institutions. The study participants were asked to evaluate the sales, research and trading services they receive from their equity brokers and to report on important market practices and trends.
