According to the article, proliferation of trading venues is at present one of the most significant changes in financial market. bandage the conventional exchanges still account for the major portion of orders, they ar currently facing the challenge from other trading venues. For example, the traditional equity markets in US like NYSE and Nasdaq straightway have a host of competitors include electronic platform such as Electronic Communication Network (ECNs) and resource Trading System (ATs), trading desks of broker-dealer firms and even a assortment of new entrants such as futures and options markets. Besides, these changes are non skillful happening in America. European equity markets are experiencing salient growth of new trading venues, which are the electronic platforms like Chi-X and BATS. In Canada, the fragmentation is also taking place with admittance of electronic venues like Alpha, Pure and MATCH Now.
As a result, such increase in fragmentation of financial markets is the motif of the authors to conduct this research.
However, it is not quite clear that how fragmentation of trading is affecting the market quality. Certainly, the addition of new trading venues has change magnitude competition, therefore forcing traditional exchanges to lower trading charges and other fees. Also, the proliferation of venues has provided a wider range of trading options to investors, therefore to foster innovations such as reductions in latency and more sophisticated crossing networks. hardly a opposite concern states that fragmentation of trading could be harming the quality of markets by reducing the liquidity available not only in the individual markets but also in the...If you want to get a full essay, order it on our website: Orderessay
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