Money managers and internally managed pension funds are expected follow T. Rowe Price, which started sending direct equity order flow to high-frequency trading firm Virtu in 2015. “The T. Rowe-Virtu deal is kind of like the canary in a coal mine, and the canary is doing pretty well,” said William R. Harts, CEO of Modern Markets Initiative, a New York electronic and high-frequency trading industry group. T. Rowe Price executives said in the real success of the program has been in finding liquidity — a growing problem for institutions as fewer stocks trade on public markets and more institutional investors move toward passive investing. “The execution quality has been solid,” said Mehmet Kinak, vice president and head of global equity market structure and electronic trading at T. Rowe Price.
Larry Harris, former sec chief economist
Financial Times, December 27, 2012