Data Assets & Alpha Group: Market Structure and the Decline in European Liquidity
Making Sense
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Is the UK Accounting Standards Change a Factor in the Drop in Liquidity?
UK asset managers don't just invest in the UK. We think they have a greater bias towards investing in Europe too. And so, Chris, do you think these UK accounting standards changes have particularly been an issue for UK corporates and UK equity markets? Well, that's another good question. So on the negative side, I'm not going to read too much into this. But when you look at the long term turnover ratios going back to 2013, there is a noticeable point to which the negative trend in liquidity appears to set in. That's around 2016 when the UK and EU began their process of separation.
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