Y Viva España

Whilst packing my bags for my annual hols, I was thinking about the rates of fragmentation between different European countries. Most of Europe, especially the UK, Germany and France, seems to be following the same path with the notable exception of Spain. Stocks within all the major European indices are trading with an FFI approaching or exceeding 2, whereas Spanish stocks remain resolutely un-fragmented. Why is it that over 99% of the trading in Spanish equities still occurs... Read More

Thinking in new ways – Part II

I wrote last week about how the LSE is planning on revitalising the corporate bond market with a special focus on making it simpler for retail investors to trade these instruments. This is part of its multi-faceted response to fragmentation which has seen the market share of the LSE and other primary exchanges severely eroded by the new MTF community. Part of the challenge these big venues face, however, is that their smaller competitors can continue to move the goal posts. One... Read More

Thinking in New Ways

As I’ve discussed before, the market disruption wrought by MiFID was bound to see a jostling for position between the established players and the new market entrants. For the primary venues this means overcoming the inertia associated with their old operating models whilst for the new guys the imperative is to create real momentum behind their brands. The FFI for the major European indices gives a few pointers as to the results of these efforts. Whilst fragmentation continues... Read More