Are You #ReadyForTheRebalance?

With apologies to Jerry Lee Lewis, there will be a whole lotta shakin’ going on on June 28.


FTSE Russell will rebalance its U.S. indexes later this month, adding and removing stocks based on market cap changes over the last 12 months.


The changes will affect traders everywhere. Approximately $9 trillion—or 67 percent of actively managed institutional U.S. equity assets—is benchmarked to these indexes, most notably the large-cap Russell 1000 and small-cap Russell 2000 indexes. In the aggregate, Russell indexes represent about 98 percent of the total investable U.S. equity market.


The Lime Brokerage team has been waiting for this day—and more importantly, we have been planning for it for quite some time to ensure that your trades are executed quickly and flawlessly.


We are #ReadyForTheRebalance, and we want to make sure that you are as well.


As we approach June 28, you should know that your brokerage operates like a finely engineered BMW instead of a Mack truck. Our technology and infrastructure are designed to blast across the Autobahn at top speeds rather than carry a heavy cross-country load. Lime Brokerage will trade a substantial number of shares on its platform toward the end of the day because of the adjustments to the Russell indexes.


What’s more, the Lime Brokerage team is very cognizant that because this rebalancing is taking place on the last trading day of a quarter, trading volume might be even heavier due to account reconciliation. This is nothing new to us at Lime Brokerage, as we have thrived during some of the most volatile trading events in history. As always, every aspect of our company is well-prepared to ensure that traders don’t see any hiccups executing their strategies and that we provide the stability, service, and performance that traders need.


What can you do to prepare? For one thing, we’re asking customers to check their accounts and limits as early as possible. You can also prepare by thinking about “the morning after” and how the market will respond to the reallocation of ticker symbols. Thinking ahead of the game is what separates the great traders from the good ones.


You will have a lot on your mind that day—worrying about your back-end technology of your trading platform should not be one of them. Our team is all-hands on deck for the rebalancing, and as we have done countless times in the past, we will make sure that your orders are executed seamlessly regardless of volume.


In our next post, we talk about how #ReadyForTheRebalance we were.