Trading systems provider Fidessa has launched global market coverage for its fragmentation analysis tools, the Fidessa Fragmentation Index (FFI) and the Fragulator.
The two web-based services were first launched in Europe to provide a view of the state of fragmentation following the introduction of MiFID.
They now provide global content with specific regional analysis on the USA, Canada, Japan and Asia as well as Europe.
Available at fragmentation.fidessa.com, the tools allow the international trading community to analyse the fragmentation of liquidity in stocks and indices across the world over any time period in a matter of seconds.
Since its launch in 2008, the FFI has allowed users to track and compare fragmentation between established market centres and the new alternative execution venues in Europe.
The Fragulator, launched in 2009, provides a view of the trading pattern of any European stock over any time period across both lit and dark venues and OTC markets. This same level of analysis is now available on a global basis.
“The buy-side will be empowered with the knowledge they need to review broker performance properly, make more informed decisions about how and where they trade and assess whether they are receiving best, better or good enough execution services,” said Steve Grob, director of group strategy, Fidessa. “The sell-side will have access to an independent measure that allows them to fine tune their smart order routing technology and demonstrate to their clients that they have the right capabilities and connections in place to achieve best execution. In addition, trading venues will be able to monitor their market share and track trends against their competitors using a consistent approach.”
The global Fragulator and FFI will provide a perspective on the effects of different regional regulatory environments on fragmentation. For example, while RegNMS and MiFID have led to a reshaping of the equities trading landscape in the USA and Europe, there is no regulatory mandate for change in Asia and Japan.
However, a number of initiatives, including the introduction of arrowhead by the Tokyo Stock Exchange, the recent launch of Chi-X Japan and the forthcoming launch of Chi-East in Singapore, look set to accelerate the rate of liquidity fragmentation across the region.