Intercontinental Exchange chief executive Jeffrey Sprecher has called out exchanges, brokers and banks for fragmenting liquidity which has ultimately hit institutional investors.
On the exchange leaders panel at the Futures Industry Association’s IDX event in London, Sprecher blasted moves made by infrastructure providers which had been made to the benefit of themselves but not their end users.
“I think the exchanges, brokers, banks and infrastructure providers have fragmented liquidity in the most liquid markets in the world,” said Sprecher, highlighting the equity and bond markets as primary examples.
He added that institutions have fragmented customers and put them in different liquidity pools so they can’t find each other.
“Most end users just want to get a good price. The more we do to prevent them from finding each other… the more we are hurting the market,” Sprecher added.
Providing the controversial comments he has been known for making on leaders panels such as this, Sprecher called on regulatory authorities to begin listening to institutional investors who want “deep and liquid markets”.
“Regulators and legislators need to listen to the end users who tend not to show up in these debates.
“Go to talk to any major institutional investor, they say ‘I cannot own certain stocks’.