Happy holidays!
The Xmas elves at Fidessa Labs will be busy wrapping presents for a while so they won’t be updating the daily figures again until the new year. Thanks to everyone for supporting the site since our launch, it’s really encouraging to see so many of you making good use of it. Next year promises to be an interesting one in the world of fragmentation and, as soon as their elfin duties are done, the lads will be knuckling down to bring you a number of new initiatives. In the... Read More
The price is right
I was reading about the ‘MTF effect’ on Finextra this morning (see http://www.finextra.com/fullstory.asp?id=19416). This article echoed some of the themes from the recent TradeTech Liquidity event about the price improvements that can be enjoyed in the new MTF world. I expect that SOR vendors will soon start waving around their own statistics that show how their brand of SOR provides even better price improvements than the competition. To me this seems to be missing... Read More
FFI extends into the 250
Thanks to the Xmas elves at Fidessa Labs working overtime, we now include coverage of the FTSE 250 which many of you have requested via email. Having had a quick look this morning it’s interesting to see that Chi-X is making a big dent in the 250 (as well as the FTSE 100) and that, whilst their numbers are relatively low, BATS and Nasdaq OMX are beating Turquoise into 4th spot on FTSE 250 stocks. Turquoise on the other hand seems to be keeping its gains made recently in... Read More
Turquoise breaks into double figures
Last Friday, Turquoise achieved over 10% market share in four FTSE 100 stocks – Wolsey, Tesco, Drax and Kingfisher. Interestingly, Chi-X had a good slice of these stocks too and so it looks like the first hard evidence is emerging that some FTSE 100 stocks will fragment substantially over multiple MTFs. Most significant was that nearly 40% of Kingfisher (FFI 2.17) was traded away from the primary exchange on alternative MTFs. This is good news for new venues like BATS and... Read More
Fragmentation fever
A number of people have asked me about Markit’s launch of its fragmentation analysis (see http://www.finextra.com/fullstory.asp?id=19393). Reading this it seems that Markit has a different (although still valuable) objective from our own. To quote: “The service ranks brokers on each European trading venue, stock or index according to the volume and value of their trades”. If I have understood this correctly then it will show the market share that brokers have on different... Read More
How smart is your router?
We’ve been chatting with a number of MTFs this week about their dependence on smart order routing technology to attract liquidity to their venues. All SOR systems basically work the same way. First, they scan the ever growing number of venues so as to create a virtual market of what’s out there, and then they decide where and how to break up the flow between those venues. As well as looking for price improvements, some of the more sophisticated SORs also take into account... Read More
Equiduct and Turquoise step forward
Interesting to see the advertisements in the FT today for Equiduct’s VBBO. Basically, the concept is that Equiduct will provide a real-time feed that shows how much better an execution could be if all the alternative trading venues were taken into account. This is a positive step towards a “consolidated tape” although, as with all things in the world of fragmentation, the devil is in the detail. Equiduct’s VBBO is calculated based on SMS order size only and so, whilst... Read More
FFI rebalanced
Glad to see that whilst I was enjoying a welcome Thanksgiving break the boys at Fidessa Labs were busy re-calculating the FFI to better reflect dual listed stocks (see The Great Dexia Debate – a resolution). As you can see from the revised data, in first place is the FTSE 100 (FFI 1.55) followed by the respective indices of Amsterdam (FFI 1.45), Paris (FFI 1.34) and then Germany (FFI 1.32). Interestingly, the LSE has now lost around 30% market share to alternative venues... Read More
