Tuesday, July 14, 2009

Faint Praise for Chi-X

Celent, the financial research firm, has studied Europe's stock exchanges, and the new breed of multilateral trading facilities (MTFs) that has developed to feed into them.

In a report published July 8, Celent says that only a few of these MTFs will survive the hypercompetitive environment. Of those it discusses it singles out for praise, though it seems to me for rather faint praise, Chi-X.

The report said that only Chi-X was "close" to hitting the break even point.

So they'll probably survive simply because they're the best of a bad lot? If that doesn't get you to breakout the confetti, what will?

Two pie graphs are illuminating about changes in how the equity volume in Europe is processed. Most of the growth in dark pools over a recent period of 15 months was at the expense of the exchanges, not at the expense of over-the-counter trading, which has stayed nearly static.

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