Boston, MA, November 14, 2007
– A new report from Aite Group, LLC examines the existing exchange environment and its
competitive landscape in the post-MiFID European market. It also analyzes the potential adoption
rate for alternative execution venues in their upcoming battle against the incumbent exchanges.
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The report, titled "Post-MiFID European Market: Can Reality
Catch Up to the Hype?", predicts that with the expected further proliferation of the European
execution venues, competition for the European market share will only intensify as MiFID rolls out.
The European market will have to fully accept the fact that electronic trading has become the main
channel for trade execution, as the United States has already realized with Regulation NMS. Automation
of the entire trade life cycle will become even more important as firms struggle to comply with MiFID
compliance reporting. The de facto, monopolistic nature of some of the exchanges will certainly be
threatened in the post-MiFID reality, as Multilateral Trading Facilities and dark pools continue to
multiply and spread throughout Europe, touting anonymity, speed, low market impact and low execution
fees.
"Despite predictions that exchanges will suffer most as a result of MiFID, the
reality is that the exchanges still hold the key to their ultimate fate in a post-MiFID world,"
says Sang Lee,
managing partner at Aite Group and author of this report. "In fact, under MiFID, exchanges should feel
compelled to penetrate other financial markets to boost overall market share and revenue and seek
opportunities in other instruments, including highly profitable OTC products."
This 16-page Impact Note contains 5 Figures and 2 Tables and profiles the following
alternative venues: BOAT, Chi-X Europe Ltd., Equiduct, Euro Millennium, ITG Europe, Liquidnet Europe, and Turquoise.
Clients of Aite Group's Retail and Institutional Securities & Investments service can download the
report by clicking on the icon to the
right.
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