Amid one of the wildest years in geopolitical history, when stock market volatility is knuckle-dragging at all-time lows, a Tabb Group report notes a three-year low in equity trading volume. While volatility reduction is a headline in 2017, there was an odd divergence in August that was among several nuanced reasons for the stock trading volume drop, Tabb Group’s Valerie Bogard noted. Higher volatility normally correlates to higher stock trading volume, but that didn't happen in August, as a passive trend may be at play along with idiosyncratic differentials.
In August, average daily trading volume dropped 2% on a month-over-month basis to 5.9 billion shares. Trade size, used...
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