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An article relating to this blog post on Finextra:

Fidessa launches Fragmentation Index

Fidessa group (LSE: FDSA), provider of the Fidessa and Fidessa LatentZero trading, market data and global connectivity solutions, has today announced the launch of the Fidessa Fragmentation Index (FFI...


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Fragmentation Index - Congratulations Fidessa

With the introduction of MIFID fragmenting liquidity was inevitable. Keeping a meaningful eye on it in a usable manner however is and will continue to be a challenge.

Congratulations to Fidessa for making a start with a reasonable quality fragmentation index.

I expect this will be the first of many such services. I predict over time we will also see - 

- more competitors

- divergence of offerings - transparent vs proprietary undisclosed index formulas

- improved timeliness - intraday?

- index aggregation (index on index :-)

- improved accessibility to the index via FIX or similar so trading engines can use the information more dynamically.

All of these are relatively obvious stuff, the real issue will be who is well placed to deliver them and if regulation creeps in since it will inevitability become another mechanism for influencing liquidity too.

I doubt we will see derivatives on this sort of index, it is hard to imagine any practical applications but index trends would be of interest for the analysts covering the trading venues.

Well done Fidessa for making a start in this potentially important area.

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Peter J Cooper

Peter J Cooper

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Cooper & Co

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This post is from a series of posts in the group:

Innovation in Financial Services

A discussion of trends in innovation management within financial institutions, and the key processes, technology and cultural shifts driving innovation.


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