The European Equity Electronic Trading Landscape: How Deep Is Your Pool?
Report Summary
The European Equity Electronic Trading Landscape: How Deep Is Your Pool?
To meet the demands of Europe's new high frequency traders, brokers have had to adapt their offerings.
LONDON, March 31, 2010 – A new report from Aite Group, LLC provides an overview of Europe's electronic trading market for equities, detailing nuances particular to the European market and examining elements of the business, such as available algorithms and access to individual markets. The report also profiles the major brokerage players in the European equity electronic trading space, helping buy-side traders that seek a brokerage service appropriate for their unique needs.
The introduction of MiFID in November 2007 has spurred clients' reliance on their brokers, which provide them with algorithms and smart order routers in an increasingly fragmented European landscape. Multiple venues have emerged over the last two and a half years, including MTFs and dark pools. With faster systems and infrastructure, these new destinations have led to a proliferation of technology-savvy, latency-sensitive high frequency traders. About half of all European equity volume is currently executed electronically, and that rate will continue to rise. As new types of clients materialize and traditional clients become more sophisticated, brokers must adapt their offerings to suit the needs of diverse client traders. Brokers have expanded from their traditional, simple benchmark strategies to incorporate dynamic, real-time variables, customization, and low-latency infrastructure.
"Post-crisis, market participants have become focused on real-time risk management and analysis," says Simmy Grewal, analyst with Aite Group and author of this report. "Pre- and post-trade tools are a must for any algorithmic offering, but notable demand currently exists for intraday analytics; actionable information that client traders can utilize to affect their current trades. This demand is only likely to increase in the future, and any innovation in the real-time analytics space will be key to capturing that demand."
The report provides an overview of the major brokerage players in the European equity electronic trading space, including Bank of America Merrill Lynch, Barclays Capital, Citi, ConvergEx Group, Credit Suisse, Deutsche Bank, Goldman Sachs, J.P. Morgan Cazenove, Morgan Stanley, Nomura, Sanford C. Bernstein, and UBS.
This 57-page Impact Report contains 16 figures and five tables. Clients of Aite Group's Institutional Securities & Investments service can download the report.