European Multilateral Trading Facilities: The Post-MiFID Exchange Landscape
Report Summary
European Multilateral Trading Facilities: The Post-MiFID Exchange Landscape
After a prodigious start, MTFs are poised for a showdown with traditional trading venues in Europe.
Boston, MA, June 29, 2009 – A new report from Aite Group, LLC examines the current landscape and future prospects of European multilateral trading facilities (MTFs). The report also profiles the major MTFs currently in operation in Europe.
In the summer of 2008, MTFs were presented to investors in as alternative trade execution venues to the major exchanges, which were relatively costly, slow and inefficient. MiFID, and specifically its rules allowing trades to be sent to the venue with the best execution terms, opened the door to MTFs. As the markets crumbled later that year, the new MTFs were losing ground. Since then, the ultra-thin margins that MTFs thrived on have dried up, and MTFs are now struggling to survive. MTFs did impact the major exchanges, helping cut the total value of shares traded on exchanges' in half between March 2008 and March 2009. Despite the difficult market, some of the traditional exchanges seek to launch their own electronic trading components in order to compete with MTFs.
"At this point in time there is no question that many of the MTFs we see today will either disappear or be absorbed by rivals by the end of 2009," says Phillip Silitschanu, senior analyst with Aite Group and author of this report. "Ultimately, however, Aite Group believes that Europe will emulate the U.S. in terms of electronic trading and alternative trading platforms. Liquidity begets liquidity, and traders are already moving toward centers that offer the best pricing, service and technology."
The report profiles the following MTFs: BATS Europe, Chi-X Europe, NYFIX Euro Millennium, ITG POSIT, Liquidnet, Nasdaq OMX Europe and Turquoise, and looks at other venues in the market.
This 43-page Impact Report contains 31 figures and 15 tables. Clients of Aite Group's Institutional Securities & Investments service can download the report.