Business Services Industry

Special report: Execution venues - Convergence ahead?

Financial Times Mandate, February, 2008

Byline: Peter Guest

With the Markets in Financial Instruments Directive (MiFID) deadline now long passed and the slow-burn process of change under way, the future shape of the European equity trading landscape is becoming clearer. With, as expected, liquidity fragmenting to a number of trading venues and small, nimble electronic crossing networks (ECNs) and dark pools taking a more central role in trading, some industry observers suggest that the eventual form will be similar to that developing in the US.

However, the interim stage will be marked by a number of pain points, not least of which will be the costs associated with Europe's legacy infrastructure and tariffs. Driven by the electronicisation of the marketplace and uptake of algorithmic...

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