Originally appeared in MiFID Monitor
Multilateral trading facility (MTF) operators Chi-X, Turquoise, Plus Markets and Nasdaq OMX have formed an informal working group to examine the potential of establishing an alternative source for pricing and market data. The agreement between the various parties is a reaction to the fragmentation of the equity markets under the Markets in Financial Instruments Directive (MiFID) and the dominance of the London Stock Exchange (LSE) in the sector.
The group plans to explore the idea of a market-based solution in order to ensure that traders have an adequate number of pricing data feeds for comparative purposes under best execution. The MTF operators have highlighted the US’s centralised system for aggregated price reporting as a potential model for discussion.