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
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.