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improved tools and reports for our
trading members,” says Schwieg-
er. “This includes a new member
portal, which we have already
released, that gives our members
greater control and clarity over
a range of parameters which are
so important in today’s electronic
trading environment.”
does warn that markets can always
change, especially when coming to
terms with new regulations.
“When reviewing current trends
in trading and execution, it is im-
portant to remember that we have
experienced a prolonged period
of relatively low market volatility,”
he says. “Should that change and
volatility increase, history suggests
that trading preference and styles
might also change.”
Cost concerns
Its little secret that costs will be
one of the biggest challenges for
LSEG’s members under MiFID
II. The loss of broker crossing
networks alongside increased re-
porting obligations means brokers
will be more focused on costs and
the prioritisation of resources for
the development of new trading
services.
Schwieger says the group
recognised this problem early on
during the run up to MiFID II and
moved to design functionalities,
such as the hidden mid-point
order, intraday auctions and Close
Price Crossing (CPX) to have
minimal coding requirements for
its members.
LSEG also spent time last
year focusing on issuers on the
exchange by building out new
services designed to provide better
understanding of trading in their
securities and the wider market,
and those efforts have continued
into 2018.
“We are working on a range of
New projects
While equities remain a key focus
for LSEG, Schwieger says the
group will continue to grow its
listing of other securities such as
exchange-traded funds (ETFs),
bonds and depository receipts.
To do so, the group is working on
improved trading functionality and
liquidity across the spectrum.
“We are designing new request-
for-quote services for both ETFs
and equities,” says Schwieger.
“Both will operate the same core
functions, thereby providing mem-
bers with greater returns on their
resource spending. It will also open
the door to new liquidity providers
across both asset classes and new
ways to manage risks.”
As for depository receipts, the
LSEG offers securities for 44 coun-
tries on the International Order
Book (IOB). Schwieger says it has
experienced particular success
with Russian depository receipts
and is working with a broad cross
section of market participants –
fund managers, brokers, DR banks,
liquidity providers, custody and
security lenders – to find ways to
replicate this success in both exist-
ing depository receipts, and those
from new geographies.
“The depository receipts avail-
able on the IOB offer an excellent
opportunity not only to extend the
potential investor base for an issu-
er, but helps to extend the period in
which a security can be traded and
valued across the globe,” he says.
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