Once tradition-bound, Europe is now overtaking the US as the leading equity market of the world, according to a new study by TABB Group. Driven by three distinct trends – unification, technology and transparency – Europe will create a far more efficient landscape for investors and asset managers than it has in the past, says TABB Group in its new industry benchmark study released today, “Institutional Equity Trading in Europe 2007: The Buy-side Perspective.”
According to Adam Sussman, senior research analyst and author of the study,"these trends position Europe for rapid growth in electronic trading as we see both direct market access and algorithmic trading flow growing at an approximate compound annual growth rate of 50% through 2009."
European harmonisation is still in its infancy, points out Sussman. "Cultural and geographic differences will not disappear quickly, which is why less than 33%of the buy-side believe that a single market structure will take hold in the next five years," he comments.
"Even after MiFID is adopted into law and implemented across the 30 countries, a grand unification of capital markets is not on the cards for at least a few decades."