LIQUIDITY LANDSCAPE IN EUROPE POST MIFID IIadmin
Best Execution , July 3, 2018
big xyt shares independent insights on European trading derived from a consolidated view on cash equity markets.
The measures covered below are used as a reference by exchanges, brokers and buyside firms, reflecting answers to relevant questions occuring in the post-MiFID II era. The methodology is fully transparent and applied to tick data captured from all major venues and APAs (Approved Publication Arrangements).
During the first half of 2018, market participants and observers are continuing to evaluate the changing liquidity landscape of European equities. One of the key questions this year is around the introduction of a ban on Broker Crossing Networks (BCNs), thereby outlawing the matching of a bank or broker’s internal client orders without pre-trade transparency for the rest of the market. Would this ban effectively force BCN activity onto the lit markets (public exchanges), as intended by the regulator with its desire to maximise the transparency of all orders, both pre- and post-trade, for the benefit of the end clients? Or would this BCN activity migrate to another mechanism or perhaps be diluted altogether?
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