The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

Trading platforms: Brokers take on the exchanges

Investment banks are thinking of setting up their own alternatives.

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 direction of setting up their own alternative trading systems (ATS).

“I think it’s inevitable,” says Seth Merrin, the founder and CEO of Liquidnet, a highly successful buy-side-only block-trade crossing system. “It’s just something they have to do for economic as well as competitive reasons. Most of them still have football field-sized rooms of traders, which is a very expensive way of doing things when much of the flow they handle could be put into an ATS.”

Investment banks already do a lot of automated internal order matching for certain types of orders through their existing trading systems.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree