Cantor Fitzgerald, a leading bond brokerage firm prior to the 9/11 attack, has been fervently rebuilding, and the company recently announced its intent to launch a new exchange traded fund arbitrage group and enter the global ETF market space.
Drawing from analysis through proprietary pricing models and market research, Cantor Fitzgerald will track market behavior of ETFs in real time and capitalize on arbitrage opportunities, reports Maureen Nevin Duffy for Institutional Investor. The firm will take e-mini futures and derivatives on major index-based ETFs, along with utility, commodity, currency and other ETFs.
“It’s a great time to be in this business. ETFs are growing by leaps and bounds. It’s one of the fastest-growing sectors,” Dan Segal, the new head the ETF arbitrage group, remarked in the report.
Jarred Kessler, the firm’s global head of equities, said the company will be targeting institutional investors.
“We’re working through every issuer out there,” Kessler said in the same interview. “If clients want exposure to the Japanese yen, utilities, alternative energy or gold, Dan’s group can supply the bids and offers offers at a larger size than our peers’. Liquidity is very important in this business. Our technology can provide the best bids and offers.”
“Our goal is to provide the best liquidity on the Street and good content information — not advice,” Segal added.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.