Yesterday 5 FTSE 100 stocks broke through the statistically significant barrier of having an FFI of 2 or above – these stocks were Sage Group (FFI 2.28), Johnson Matthey (FFI 2.14), AB Food (FFI 2.13), 3I Group (2.12) and Standard Life (2.11) which seems to show that no one sector is necessarily fragmenting quicker than any other. The beneficiaries were, of course, Chi-X and Turquoise but interestingly the honours were pretty evenly split between them in terms of market share. This contrasts with the FTSE 100 as a whole were Chi-X has 4 or 5 times the market share that Turquoise has.
It’s also interesting to compare the top ten most fragmented stocks between London, Paris and Germany. Yesterday the top ten FFI average for the FTSE 100 was 2.02, the CAC 40 was 1.64 and the DAX was 1.34. As more and more stocks break the FFI 2 barrier and wonder if we will see the pace of fragmentation increase further.