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

Upcoming Webinar: Best practices for compliance with EU Market Abuse Regulation

Date: 18 June 2024 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes EU Market Abuse Regulation (MAR) came into force in July 2016, rescinding the previous Market Abuse Directive and replacing it with a significantly extended scope of regulatory obligations. Eight years later, and amid constant change in capital markets regulation,...

BLOG

Delta Capita and Montis Group Enhance Partnership to Develop Advanced Digital Securities CSD Infrastructure

Delta Capita and Montis Group have announced the expansion of their commercial partnership, building on their initial success in developing the Montis Central Securities Depositary (CSD) system. This digitally-native CSD system, powered by Delta Capita’s MACH Distributed Ledger Technology (DLT) platform, is designed to provide the market infrastructure needed for regulated tokenised assets, in the...

EVENT

AI in Capital Markets Summit London

The AI in Capital Markets Summit will explore current and emerging trends in AI, the potential of Generative AI and LLMs and how AI can be applied for efficiencies and business value across a number of use cases, in the front and back office of financial institutions. The agenda will explore the risks and challenges of adopting AI and the foundational technologies and data management capabilities that underpin successful deployment.

GUIDE

Trading Regulations Handbook 2022

Welcome to the third edition of A-Team Group’s Trading Regulations Handbook, a publication designed to help you gain a full understanding of regulations that have an impact on your trading operations, data and technology. The handbook provides details of each regulation and its requirements, as well as ‘at-a-glance’ summaries, regulatory timelines and compliance deadlines, and...