Sometimes, true innovation is just the better timing of a good idea.
By Chirstian Voigt, Senior Regulatory Adviser at
The recent slew of exchange announcements introducing new dark
trading facilities in response to Mifid II would appear to
suggest that the regulation has triggered a whole raft of
innovations. But is that what’s really happening
Euronext tells us it is planning to introduce a new liquidity
discovery service building on its existing iceberg orders.
Looking at the detail, this appears fairly similar to the
Volume Discovery Order announced shortly before by Deutsche
Boerse. While Deutsche Boerse can certainly claim to be the
first to publish its iceberg extension plans, these may not be
quite so "new" after all. An academic paper authored by past
and present Deutsche Boerse employees discussing this very idea
was posted online in 2008, long before we knew about Mifid
Bats Europe is promoting its partnership plans with BIDS
Trading to provide a Mifid II compliant way to interact with
buy-side IOIs. While the technical details under the hood might
differ, it bears some resemblance to the SIX-Liquidnet
partnership SLS – launched back in 2011 –
which is another example of an exchange partnering with a
buy-side block trade network.
We could argue whether any of these initiatives are new
innovations or not, but let’s not forget that even
the Apple iPod wasn’t the first of its kind.
Sometimes, true innovation is just the better timing of a good
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