Multilateral trading facilities (MTFs) and exchanges are on the verge of igniting a tick size war that could decrease market efficiency and prove detrimental to investors searching for liquidity in European stocks.
Trading activity in Europe’s equity markets continued to pick up in April, with total turnover across exchanges and multilateral trading facilities increasing 15.6% to €1.31 trillion, according the latest market share report from data provider Thomson Reuters.
The European trading community must factor the liquidity won by multilateral trading facilities into trading strategies and indices to enable continuous trading during an exchange outage.
European equity trading activity showed signs of stabilising in March, with turnover increasing by 11% from February to just over €1.1 trillion, according to the latest market share report from Thomson Reuters, which includes delayed trades for the first time.
Multilateral trading facilities (MTFs) have captured around a quarter of trading in European stocks and now provide a viable alternative to primary exchanges, according to new research from broker CA Cheuvreux.
Chi-X Europe suffered a fall in Q1 2009 activity compared with the previous quarter, in line with a global slump of equity trading volumes, but the pan-European multilateral trading facility (MTF), also reported strong growth between March and February.
NYSE Euronext, a global exchange group, has targeted Q3 2009 for the completion of a common infrastructure that links all its European trading platforms.
A recent decline in European equity trading volumes has coincided with an onslaught of statistics and performance tables asserting the merits of trading on various venues.
Agency broker and technology provider ITG said its POSIT crossing network can execute trades in equities from the Czech Republic, Hungary and South Africa.
NYFIX, a trading solutions vendor, is migrating trading on its US-based Millennium dark pool to a new high-performance technology architecture, HPX.