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Analysis | Market fragmentation Spreads at touch Q3 2012 (change on Q2 2012)


FTSE 100


Primary CHIX BATE TRQX BURG QMTF XEQT XHFT


2 1


3


7.35 -0.22 5.81 2


1 6.96 -0.22


9.21 0.02 8.65 -0.38


9.24 -2.10


40.92 -50.82 32.08 32.86


-1.41


Spreads at touch illustrate the competitive landscape of the MTFs with regional differences in performance. We can see Chi-X offering the best spreads on London, but Burgundy being the most competitive on OMX Stockholm.


Spreads at €25,000 Q3 2012 (change on Q2 2012) FTSE 100


CAC


Primary CHIX BATE TRQX BURG QMTF XEQT XHFT


1 2


3


8.94 -0.44 6.61 2


1 9.75 -0.30


21.3 2.01 16.21 0.74


17.08 -2.01


42.83 -69.61 65.62 29.8


-4.81


For a larger deal size of €25,000, the results are predictably highlighting the greater volumes available on the Primary venues. Chi-X ranks consistently in second place, supporting their position as the MTF with significant market share across most markets.


7.05 19.75 -9.55 71.05 12.34 51.76 -16.48


Turquoise ranks in third position also consistently across all Indices. Spreads for larger deal sizes have also tightened on FTSE and CAC indices but generally widened on other European indices.


3 9.42


-0.72 6.31 2


1 -0.35


19.93 0.53 13.79 0.36


3 8.06 DAX 0.19


20.08 -0.42 15.49 2.81


0.19 11.64


1 2


3 8.60 53.42 -29.20 90.65 3.98 47.36 8.14


What is also interesting is Turquoise ranked as second on the SMI best bid / offer spread, just ahead of Chi-X. Touch spreads have tightened slightly on FTSE and CAC but widened on SMI, MIB and OMX Stockholm.


3 6.18 11.12 CAC


-0.46 5.14 2


1


-0.31 -0.42


8.05 -0.70 3 5.67 DAX 0.00


10.2 -1.20 8.34 0.27


0.06 10.39


1 3


2 SMI 8.71 0.35


11.72 0.45 10.15 0.18


0.46 15.65


1 2


3 MIB 11.96


0.40 1.61


22.06 2.04 21.82 -0.30


1


2 3


OMX-S


10.37 10.73 12.17 11.41 10.19 11.76


0.24 0.79 0.18


-0.01 0.22


-0.28


SMI 9.17 0.40


13.79 0.34 12.1 0.23


0.59 25.42


1 2


3


MIB 13.69


0.18 3.53


39.01 2.50 28.09 1.39


1 2


3


OMX-S


11.18 13.67 18.79 16.76 18.24 22.04


0.19 0.76 0.49 1.26 1.69 0.41


66


Best Execution | Autumn 2012


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