25 Feb 2008
Reuters figures show fragmentation in Euro stocks post MiFID with domestic exchanges under pressure
LONDON - Reuters (LSE: RTR; NASDAQ: RTRSY) has today released the first complete figures for equity trading across Europe since the introduction of the Market in Financial Instruments Directive (MiFID) last November. They show that, as predicted, there has been considerable fragmentation of the European equity market with new entrant MarkitBOAT making substantial inroads into the publication of trades once carried by domestic exchanges.
In each of the first three months of MiFID, MarkitBOAT has achieved the third highest value of trades reported across all European equities after Euronext and the London Stock Exchange (LSE).
| All European Equities - % share by value for all Trades | |||
| January '08 | December '07 | November '07 | |
| Euronext (incl OTC) | 18.34% | 19.51% | 17.39% |
| LSE (incl OTC) | 15.97% | 17.59% | 18.35% |
| MarkitBOAT | 15.72% | 17.10% | 17.52% |
| Xetra (incl OTC) | 15.60% | 13.85% | 13.29% |
When performing the same analysis based on the number of shares traded, MarkitBOAT published the second highest volume to the LSE, although the LSE published over twice the volume in shares as MarkitBOAT, who in turn were significantly ahead of Euronext and Xetra. MarkitBOAT also published the second highest value and volume of shares on a per country of listing basis including the Italian, Spanish, UK and Euronext markets.
The statistics demonstrate that trade data has become fragmented although many players may be unaware of the extent of this, particularly in the domestic markets where the data from the local exchanges remains the focus.
Reuters will now be reporting the data for equity volumes across Europe on a monthly basis to give a developing picture as to how the market is evolving post-MiFID. This data, at country and main index level, is freely available from www.reuters.com/mifid but access to the data on an individual stock basis is only available to subscribers to Reuters Transactions Cost Analysis Service (RTCAS). The information will allow clients to measure the quality of their trades, ensuring that they remain compliant with the best execution elements of MiFID.
In November, Reuters announced the launch of a new Reuters Instrument Code (RIC), known as “.x”, which offers clients the ability to see the best bid and offer price on major stocks wherever they are quoted as a cost effective means of consolidating data in one place.
Andrew Allwright, Reuters Business Manager for Exchange Traded Instruments said: “These authoritative figures from Reuters show factually that European stocks are exhibiting the trends that many predicted before MiFID came into operation. Across Europe the market is fragmenting and many domestic exchanges are losing some of their traditional franchises as traders use alternative venues. The market share data shows how the Reuters .x RIC allows our clients to track over 90% of trading activity across European equities in real time to ensure MiFID compliance.”
Contact:
Yvonne Diaz
Public Relations Director
Tel: +44 207 542 2615
Fax : +44 20 7542 4835
Email: Yvonne.diaz@reuters.com
Steve Clarke
Reuters Media Relations
Tel: +44 20 7542 6865
Mobile: +44 7990 56 6865
Email: steve.clarke@reuters.com
Note to editors
The Reuters Instrument Code (RIC) is the unique name given to each global stock followed by the exchange code showing where it is quoted. The exchange code used in the RIC is proprietary to Reuters and is used extensively by Reuters clients.
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