Equity Trading – Fragmented Future or Europe-wide Collaboration Opportunity?

A Financial News breakfast briefing on equity trading addressed the topic of market fragmentation and whether there are opportunities for innovation and collaboration, as market participants are developing new ways of overcoming the challenges presented by current low volumes and liquidity shifts from continuous trading to auctions and from lit markets to dark pools. 

Stock exchanges play a critical role in the infrastructure of public capital markets, helping to channel funding towards listed companies and determining company valuations. In Europe, however, equity trading volumes have hit multi-year lows in 2023, leading some to question whether its markets can function efficiently and profitably.

According to Tony Shaw, executive director of the London office and Head Sales UK & Ireland, SIX Swiss Exchange, several cyclical issues have impacted equity trading this year as the market backdrop has deteriorated: “While we have seen some of the lowest volumes since 2012, fragmentation of European markets continues with growth in the number of execution venues.”

Shaw added that although increased competition might have brought the cost of trading down, the additional cost of finding liquidity and the investment required in new technology has increased implicit costs.

Watch the full webcast where Tony Shaw discusses with Edward Phillips, Head of EMEA Cash Voice Sales Trading at UBS and Paul Squires, Head of EMEA and APAC Equities Trading at Invesco, and moderator Mae Cheng, Executive Vice President and General Manager of Leadership Products and Services at Dow Jones, about the impact of Brexit on regulatory divergence, the challenges that need to be addressed to maintain and improve the well-functioning and efficiency of equity trading in Europe, and what role innovation plays in this context. 

SIX Swiss Exchange runs one of the most advanced and stable trading platforms in the world, offering the perfect balance between speed and capacity. Coupled with our superior liquidity, this empowers participants, traders and investors to flexibly respond to market developments and implement instant investment decisions. Discover the benefits of becoming a participant.

• 100 Years of Exchange Membership: Then as Now with Many Advantages
• CAT Financial Products Joins SIX Swiss Exchange as New Trading Participant
• Trading on SIX Swiss Exchange Enhanced with New Order Types