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The truth about Asian investment banking

December 2006

Winners and losers in exchange consolidation


Increased competition on cost between European exchanges might lead to liquidity fragmentation. Is there a solution to this?


Last month a group of seven investment banks got together to announce that they planned to launch a pan-European MTF to compete against Europe’s incumbent exchanges. Chi-X, a pan-European MTF run by Instinet, also launched, injecting a real dose of competition into the business.

While the clients of stock exchanges will be pleased to see competition erode the pricing...


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