Tag: MTF

Can MTFs substitute for exchanges?

An interesting new study from BATS Europe examines what happened when trading on NYSE Euronext stopped for about half an hour on 13 October. It shows the extent to which MTFs have – and have not – become viable alternatives to

Posted in Exchange & Trading Systems, Exchanges, Information Technology Tagged with: , , ,

What is the “RR”?

In recent years the MTFs have significantly changed the way equities are traded in Europe. Volumes negotiated in the main MTFs (Chi-X, Turquoise, Bats) are now on average close to 20% of the total volume for the main European financial

Posted in Exchanges, Rules & Regulation Tagged with: , , , , ,

What has US legislation got to do with European MTFs?

A colleague, who is among those closely following new US legislation the “Wall Street Transparency and Accountability Act of 2010,” has drawn my attention to Section 733:  new provisions for regulating electronic swap trading platforms as “Swap Execution Facilities” –

Posted in Exchanges, Rules & Regulation Tagged with: ,

NYSE Euronext and LCH.Clearnet: some observations

NYSE Euronext has announced that it intends to spend $60 million to build two new clearing houses, in London and Paris, to be operational by the end of 2012, bringing in-house the clearing of cash and derivative contracts currently undertaken

Posted in CCP, Clearing & Settlement Tagged with: , , , , , ,

The European Market in US Shares

Both the Turquoise and NYSE Arca Europe MTFs have announced new markets in US shares during European hours. Will these ventures work when attempts in the past have been unsuccessful?

Well perhaps. But liquidity on the MTFs could be thin until New York opens.

A further question is whether the clearing service offered by EuroCCP is enough for traders to regard the European MTFs as part of the same trading space as the US. Or is it necessary to go a step further and make European trading fully fungible with US trading through a single clearing process?

Posted in CCP, Clearing & Settlement, Exchanges Tagged with: , , , , ,