While attention is firmly fixed on the takeover and merger talks surrounding Europe’s exchanges, investment banks are quietly contemplating proposals that could lead to a far more radical redrawing of the equities trading landscape in Europe.
“What’s taking place is a major re-examination of the boundaries between broker dealers and exchanges,” says Duncan Niederauer, co-head of Goldman Sachs’s equity execution services division. “Broker dealers with depth and breadth of liquidity are looking at developing their own crossing networks and will do so if there is institutional demand.”
Investment banks are thought to be in the very early stages of their deliberations but there are powerful winds pushing them in the...
