The sound of the drums – 8 February 2011
First Published Wednesday, 9th February 2011 03:04 pm from Fidessa : Steve Grob
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It's an interesting time to be a pan-European exchange
operator like NYSE Euronext as it seems to be taking fire from
target="_blank">FT Trading Room, the revamped
Equiduct is now starting to nibble at NYSE Euronext's Paris
target="_blank">Equiduct's top ten stocks (by value)
are now all French.
Meanwhile the most
target="_blank">TOM, is doing exactly the same thing
in Amsterdam. In fact, the new Dutch venue is already accounting
for around 5% of lit trading in certain stocks (Tom2.am, for
example), as the chart below shows.
href="http://fragmentation.fidessa.com/wp-content/uploads/Blogtom.png"> class="size-full wp-image-2251 aligncenter"
alt="" width="463" height="311" />
On top of this, it was also reported that title="TOM suing NYSE Euronext"
target="_blank">TOM is suing NYSE Euronext over the
latter's refusal to allow TOM to join its LIFFE derivatives
Even the LSE is weighing in by
offering an aggressive taker fee for NYSE Euronext listed stocks
through its own MTF, Turquoise, and by promising to create
competitive contracts to those listed on NYSE Euronext,
It would appear that the new guys have
done their marketing homework and recognised that focus and
flexibility are the key weapons when taking on a bigger rival (a
lesson demonstrated very well by the folks at BATS since their
launch in Europe).
With the liquidity
landscape set to change again there could be a real future for
the smaller niche venues. If this is true, then the primary
exchanges should be listening out for the sound of smaller
competitors and adjusting their defences accordingly.