Articles
The Death of the Exchange
The significance of exchange consolidation cannot be underestimated but where will it end? Exchanges have had to respond to a new competitive landscape and they are having to undergo rapid change to maintain their foothold in a market where liquidity imay no longer be everything.
Post MiFID: Execution Policy and Building an Execution Venue List
Best Execution in MiFID should be more than a simple review of price, latency and total consideration – it is about the characteristics of the client, the characteristics of the venue and the characteristics of the order. Building an execution policy and delivering a smart order routing system to meet the demands of increasingly complex algorithmic trading is a new challenge that sell-side institutions and exchanges are having to face.
Market Transparency: Making Unfilled Orders Public
One of the unintended consequences of MiFID is the potential for an exponential growth in orders compared to executions. This is something that has been seen in the US and potentially will take place in Europe, post-MiFID. The impact on infrastructure, risk, market making and margins could be considerable and the industry is having to respond to these new challenges.
MiFID Transparency
The new MiFID transparency obligations have created the CESR Liquid List of shares and in so doing may inadvertently create more dark pool trading.