The brokerage says smart order routing to new venues has delivered clients average savings of of 4.91 basis points over the 12 months since the introduction of MiFID in November last year. As more markets have come onstream, so the basis point saving has increased, rising to an average 6.06 basis points during the final three months from August to October 2008.

This compares to an initial 1.73 bps in November 2007 in the first month after the introduction of MiFID, and the previous quarter's (May-July 2008) average of 5.32 bps.

Of the shares traded away from the primary markets on alternative trading venues, Instinet Europe says its clients received price improvement 55.4% of the time (by value traded) and executed at the same price or better than found on the primary markets 96.2% of the time over the three months.

The new markets are also winning significant market share away from the incumbents. By value traded, Instinet Europe executions away from the primary markets in UK, French, German and Dutch equities increased to 39.7% in October 2008, compared to an initial 11.3% in November 2007.

For UK equities alone, in October 2008 Instinet Europe says it executed 45.2% of its volume away from the London Stock Exchange, compared to 14% in November 2007.

Richard Balarkas, CEO of Instinet Europe says the imminent arrival of more dark pools and MTFs is likely to lead to even more price improvements for clients, as competing venues battle for liquidity and market share.

"We believe that both the new and emerging pools of liquidity offer tremendous opportunities for price improvement," he says. "Next year is going to prove interesting, as we anticipate more new entrants and the quest for liquidity between the MTFs themselves is only set to heighten."