17 October 2017
visit www.response.ncr.com

Euronext to develop system for banks to trade in-house - report

24 October 2006  |  8428 views  |  0 Euronext logo

In the wake of the EU's Markets in Financial Instruments Directive (MiFID), pan-European exchange Euronext is looking to introduce a new system that will enable banks and brokers to trade stocks outside of its central dealing platform.

According to a Reuters report a Euronext spokesman has confirmed reports that the exchange is in talks with investment banks about establishing an internal matching system.

MiFID, which comes into force in November 2007, will legalise internalisation across the 25 member states. In some countries market operators have benefited from a "concentration rule" requiring all share orders up to a certain size to pass through the exchange, but MiFID will end this practice.

Euronext is looking into the possibility of adapting its transaction platform to enable banks and brokers to internalise trades which will enable them to fill a customer's buy or sell order in-house rather than sending it out to the exchange, says the report.

The exchange can then check where the best possible price is available - within the bank platform or its own system - and execute the trade.

Euronext's move to develop a system for banks is seen as a way of preventing banks from cutting it out all together from stock transactions, says the report.

Last month a group of nine leading investment banks have signed a letter of intent to pool their trade transparency data and create a pan-European platform for the collection and sale of trading data that will bypass those operated by exchanges.

At present, all trades must be reported to the LSE or a recognised exchange, regardless of whether an exchange's systems were used for the transaction. But under MiFID banks will no longer be required to report all trades through exchanges and will instead be able to report trades to any registered entity.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

European firms on track with MiFID preparations, survey shows

European firms on track with MiFID preparations, survey shows

22 September 2006  |  8130 views  |  0 comments
Euro banks hit by MiFID concerns

Euro banks hit by MiFID concerns

12 September 2006  |  9174 views  |  0 comments
Industry lobby urges FSA to drop MiFID best execution proposals

Industry lobby urges FSA to drop MiFID best execution proposals

05 September 2006  |  10186 views  |  0 comments
European exchange price war looms as Virt-x cuts tariffs

European exchange price war looms as Virt-x cuts tariffs

04 September 2006  |  5991 views  |  0 comments
UK trade bodies band together to influence MiFID - FT

UK trade bodies band together to influence MiFID - FT

16 August 2006  |  7472 views  |  0 comments
MiFID may hit LSE transparency, warns FSA

MiFID may hit LSE transparency, warns FSA

01 August 2006  |  8108 views  |  0 comments
Firms stop work on MiFID in face of FSA best execution proposals

Firms stop work on MiFID in face of FSA best execution proposals

26 July 2006  |  11089 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.temenos.comRegister now

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
14397 views comments | 11 tweets | 3 linkedin
Taiwan's Far Eastern International Bank suffers malware attackTaiwan's Far Eastern International Bank su...
13049 views comments | 16 tweets | 22 linkedin
Monzo fends off suitors as current account upgrade beginsMonzo fends off suitors as current account...
8950 views comments | 17 tweets | 14 linkedin
Swift positive on blockchain, but big challenges remainSwift positive on blockchain, but big chal...
7887 views comments | 15 tweets | 20 linkedin
Ripple blockchain network hits 100-member markRipple blockchain network hits 100-member...
7592 views comments | 13 tweets | 13 linkedin

Featured job

Competitive base, double ote, benefits
London, UK

Find your next job