The Glittering Prize - 3 June 2010
First Published Friday, 4th June 2010 02:05 pm from Fidessa : Fidessa
The opinions expressed by this blogger and those providing comments are theirs alone, this does not reflect the opinion of Automated Trader or any employee thereof. Automated Trader is not responsible for the accuracy of any of the information supplied by this article.
Just as we were looking forward to World Cup fever
target="_blank">BATS Europe has reminded everyone
that there are other prizes at stake this summer as it unveiled
the latest addition to its smart routing capability. The new
target="_blank">BATS+ Primary and builds on the
CYCLE and RECYCLE smart algos it already offers. The basic idea
target="_blank">BATS and then, if it fails to find a
target="_blank">BATS will forward your order on to
target="_blank">LSE. And, even better, they will
only charge you 0.28 bps regardless of whether your order trades
Europe, confirmed that this price promotion is
scheduled to run for at least the next two months and pointed out
that it's a lower access fee than the current pricing
target="_blank">LSE and is irrespective of order
target="_blank">BATS is betting that it has title="BATS market share"
target="_blank">enough liquidity already to interact
with this new flow and so will not have to onward route to the
target="_blank">LSE too often. Certainly title="BATS Europe" href="http://www.batstrading.co.uk/"
target="_blank">BATS has been successful with
similar promotions in the past as some of the new flow it
attracts will stick even when the price incentive is removed. So,
target="_blank">BATS+ Primary does work then maybe
target="_blank">NYSE Euronext and title="Deutsche Boerse"
target="_blank">Deutsche Börse should watch out
The idea of market centres onward routing
flow that they can't match is standard practice in the
US where Reg NMS compels venues to route to other destinations
offering a better price. This is in contrast to MiFID which
allows the concept of best execution to be interpreted in a wide
variety of ways by different market participants. The fact that,
in Europe, brokers and venues both offer smart or onward routing
services shows just how confused the whole situation is becoming.
This is especially true as more and more large brokers wade into
the venue space and register their own dark matching facilities
target="_blank">FSA. Unlike Reg NMS, however,
MiFID's principle-based approach doesn't
offer much help in all this. Maybe what we need are much clearer
definitions as to how participants compete for the Liquidity
The reaction from Paternoster
target="_blank">LSE adjust its pricing (again) or
Either way, whilst we debate the
merits of omitting Theo Walcott from the final squad and argue
over likely England formations, it looks like we will have to
target="_blank">BATS' market share
Finally, on the subject of prizes, thanks
target="_blank">Inside Market Data for judging the
target="_blank">Fragulator® the title="Fidessa Fragulator® scoops 'Most Innovative' market
data award "
target="_blank">'Most Innovative Market Data
Project' at their awards ceremony in New York
last week. Let's just hope that the summer sees even
more silverware return to London!