Battle Stations - 26 April 2010
First Published Tuesday, 27th April 2010 03:35 pm from Fidessa : Fidessa
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Had a couple of productive (and fun) days at title="TradeTech Europe 2010"
target="_blank">TradeTech Europe last week. The
Fidessa airship flying round the exhibition hall served as a good
target="_blank">LSE Group onto its spangly new title="Millennium Exchange"
target="_blank">Millennium Exchange platform is fast
approaching. This new matching engine will also be powering the
target="_blank">Turquoise, which will be going live
target="_blank">LSE main market in
Last week also saw the title="LSE Group"
target="_blank">LSE Group introduce a revised
pricing scheme that aims to support the HFT community. title="BATS" href="http://www.batstrading.co.uk/"
target="_blank">BATS moved quickly to try and shoot
holes in this by pointing out that it was only a few months ago
target="_blank">LSE ditched a similar scheme in
favour of the wholesale trading community. Whilst title="BATS" href="http://www.batstrading.co.uk/"
target="_blank">BATS may well have a point, it seems
to me that every business is perfectly entitled to amend and
change its business model as it sees fit. In fact, the title="LSE"
target="_blank">LSE was often criticised in the past
for not moving quickly enough in terms of introducing new
initiatives or reacting to market changes. Now that it is
prepared to be a more nimble player, it becomes a far more
formidable participant in the battle for European
A quick look at the title="Fragulator"
target="_blank">Fragulator, however, shows just how
target="_blank">A. B. Food were the two most
target="_blank">FTSE 100 stocks last week.
Market Share by Venue - A.B. Food (week ending
href="http://fragmentation.fidessa.com/wp-content/uploads/abf-lit-23-april2.png"> class="alignnone size-medium wp-image-1095"
alt="" width="290" height="140" />
More interesting still is the fact that nearly 5% of
target="_blank">A.B. Food stocks were traded on dark
venues last week. The importance of effectively navigating dark
target="_blank">Instinet's own title="Richard Balarkas"
target="_blank">Richard Balarkas during his
TradeTech presentation. This is particularly important because,
counter to what the chaps at MiFID would have you believe, the
difference in order size between lit and dark trade sizes
isn't actually that great (the average trade size for
target="_blank">A.B Food last week was 510 for lit
and 651 for dark). What this means is that the interaction of lit
and dark trading is going to become a key stronghold as both
types of venue seem to be covering pretty much the same territory
in terms of order size.
Whatever the outcome,
the events of last week were a good example of the old axiom that
all's fair in love, war and liquidity.