Catching up with Technology — The Impact of Regulatory Changes on ECNs/MTFs and the Trading Venue Landscape in Europe

Abstract

With RegNMS in the US and MiFID in the EU, regulators respond to recent years' changes in trading concepts and infrastructures. Both try to catch up with technological advances and intend to create a level playing field between the different types of trading venues and a harmonisation in the order execution process. The paper illustrates and analyses the regulatory environments and the impact of their upcoming changes on ECNs and MTFs with a specific focus on Europe. Scenarios will be developed on how the regulatory overhauls will alter the competitive landscape between Regulated Markets, ECNs/MTFs and order flow internalising entities.