Fragmented Markets Push Institutional Traders to Rethink Best Execution

Aaron Kehoe, head of QwickRoute at MCAP, tells Traders Magazine that the proliferation of exchanges, alternative trading systems, and dealer pools has made institutional execution more complex. Liquidity fragmentation can increase information leakage and encourage firms to prioritize speed even when fast execution does not necessarily equal best execution. Kehoe argues that smarter routing logic should focus on finding the right liquidity at the right price, while AI can help firms analyze market and order data at greater scale. He expects the market to move toward workflows that invite liquidity providers to compete directly for orders, improving price discovery and execution outcomes.