Exchanges fight over speeds and feeds misses the point
It is fascinating to watch the fight that is going on between the traditional exchanges – Deutsche Bourse, Euronext and London Stock Exchange (LSE) – and the new guys – Chi-x, BAT, virt-x, PLUSMarkets, Boat, Turquoise, NYFix Millennium, NASDAQ OMX, Equiduct …
The fight is over liquidity, trading, order execution, pricing, clearing and settlement.
In fact, on that note, we should throw in LCH.Clearnet, Clearstream and Euroclear in their battles with EuroCCP, Rainbow and friends.
There is no doubt that MiFID has been a trigger for change, although the resulting changes are yet to be seen. In other words, we are seeing change, but just do not know the long-term landscape, winners and losers as yet.
The reason for mentioning this today is two-fold.
First, LSE came out yesterday saying that the new guys had to fight on some other ground than latency. Second, Turquoise’s leadership – Eli Lederman, CEO and Adrian Farnham, COO – are addressing the Financial Services Club next Thursday with their views of what it takes to win in the future.
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