About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

As New Regulation Arrives, Europe Can Expect More Trading Venues

Subscribe to our newsletter

 

Experts on the European execution venue landscape are split on whether the future of that landscape is consolidation or fragmentation, as they expressed in a panel discussion on the topic at the Intelligent Trading Summit in London on 2nd February.

Multi-lateral trading facility (MTF) activity has increased, according to Will Winzor-Saile, an execution architecture executive at Redburn. While consolidation is a perpetual phenomenon among exchanges, new regulations (such as MiFID II) drive creation of new trading venues, Winzor-Saile said.

“ECNs will become SIs [systematic internalisers]. MTSs will go to block-only liquidity,” said Winzor-Saile. “That’s going to change so there are a lot more venues to connect to, but there are only so many venues any company can connect to. We can get to a large number of venues, but there’s still limits to the number we can access. As we get that fragmentation, it’s inevitable that you need consolidation to counteract that.”

Another part of European execution venue landscape considerations, aside from possible mergers of major exchanges, or fragmentation of venues, is the placement and number of co-location data centers near exchanges and trading venues, as Winzor-Saile also remarked upon. “Co-location is becoming standard,’ he said, “but with how markets have moved, everyone is consolidating around one or two data centers. Demand is now consolidating. It’s now about ensuring the accuracy of those systems. We’re not reacting to every single market tick. We must understand where the market is going, what venues we can access and how.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Hearing from the Experts: AI Governance Best Practices

The rapid spread of artificial intelligence in the financial industry presents data teams with novel challenges. AI’s ability to harvest and utilize vast amounts of data has raised concerns about the privacy and security of sensitive proprietary data and the ethical and legal use of external information. Robust data governance frameworks provide the guardrails needed...

BLOG

Is the End in Sight? Plotting the Journey to Consolidated Tape in the EU and UK Markets

By Anne Plested, MCSI, Senior Product Manager for Regulation, ION Markets. The realization of consolidated tape has been long-awaited for equities trading in the UK and the European Union (EU). With the European Commission (EC) adopting the enabling technical standards on 12 June and the European Securities and Markets Authority (ESMA) launching its search for...

EVENT

Buy AND Build: The Future of Capital Markets Technology

Buy AND Build: The Future of Capital Markets Technology London examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

GUIDE

The DORA Implementation Playbook: A Practitioner’s Guide to Demonstrating Resilience Beyond the Deadline

The Digital Operational Resilience Act (DORA) has fundamentally reshaped the European Union’s financial regulatory landscape, with its full application beginning on January 17, 2025. This regulation goes beyond traditional risk management, explicitly acknowledging that digital incidents can threaten the stability of the entire financial system. As the deadline has passed, the focus is now shifting...