Section 2 - FTSE

TRADING DATA FOR MID DECEMBER 2008 (EUROPE ONLY)
Venue turnover on the
16th December 2008
Venue Trades Turnover Share
€ 000's %
London 568,413 4,251,708 20.11%
Xetra 163,028 3,273,703 15.49%
Paris 284,185 3,026,720 14.32%
Chi-X 330,286 1,929,602 9.13%
Madrid 89,375 1,798,618 8.51%
SWX 92,050 1,754,416 8.30%
Milan 117,759 1,234,710 5.84%
Turquoise 148,958 1,046,458 4.95%
Amsterdam 102,796 1,018,204 4.82%
Stockholm 56,901 742,664 3.51%
Helsinki 35,489 368,062 1.74%
Brussels 40,710 272,433 1.29%
Copenhagen 14,224 164,686 0.78%
BATS 37,436 164,267 0.78%
Lisbon 14,957 78,734 0.37%
Nasdaq OMX 2,706 12,893 0.06%
F T S E G L O B A L M A R K E T S • J A N U A R Y / F E B R U A R Y 2 0 0 9
Index market share by venue as of 16th
December 2008
■ BATS 1,692,679,055
■ Chi-X 55,474,806,309
■ Copenhagen 5,627,172,892
■ Amsterdam 29,515,979,897
■ Brussels 5,618,466,860
■ Lisbon 2,613,601,564
■ Paris 83,259,044,929
■ Frankfurt N/A
■ Xetra 86,619,580,417
Index Market Share by Venue as of 16th December 2008
Primary Alternative Venues
■ Helsinki 10,391,280,842
■ London 128,535,134,938
■ Madrid 47,772,645,094
■ Milan 40,577,825,970
■ Nasdaq-OMX 138,799,631
■ Stockholm 20,077,565,709
■ Turquoise 19,577,155,245
■ SWX 45,647,116,803
Index Venue Share Chi-X Turquoise Nasdaq OMX BATS Copen. Amst. Paris Xetra Helsinki
AEX Amsterdam 78.56% 13.67% 6.35% 0.03% 0.74% 1 0.28%
BEL 20 Brussels 94.46% 3.99% 1.44% 0.02% 0.06% 1
CAC 40 Paris 81.24% 11.76% 5.54% 0.05% 0.84% 1 0.35%
DAX Xetra 83.35% 9.71% 4.87% 0.04% 0.64% 1 0.03%
FTSE 100 London 75.42% 14.66% 7.96% 0.14% 1.81%
FTSE 250 London 89.03% 9.89% 0.05% 0.14% 0.89%
IBEX 35 Madrid 99.84% 0.04%
MIB 30 Milan 94.25% 2.37% 2.90% 0.02% 0.19% 1 1 0.12%
NORDIC 40 Stockholm 54.55% 3.06% 2.44% 0.06% 0.01% 12.10% 1 0.68% 27.03%
PSI 20 Lisbon 99.23% 0.77%
SMI SWX 91.33% 3.57% 5.06% 0.02% 0.01%
COMMENTARY
Turquoise achieved over 10% market share in four FTSE 100 stocks by early December (Wolsey, Tesco, Drax and Kingfisher).
Interestingly, Chi-X had a good sliceof these stocks too and so it looks like the first hard evidence is emerging that some
FTSE 100 stocks will fragment substantially over multiple MTFs. Most significant was that nearly 40% of Kingfisher (FFI 2.17)
was traded away from the primary exchange on alternative MTFs. This is good news for new venues like BATS and Nasdaq
OMX as it seems to indicate that there is no defined limit yet as to how far a stock will fragment away from its primary
market. Some observers thought that the new MTFs would be crabbling over the same amount of “alternative” liquidity. In
fact, it seems that the opposite is the case and that, as more alternative venues launch, then more and more liquidity will
divert to the new venues. The bigger question, though, concerns viability. Just because an alternative venue can attract
market share in some stocks there’s no guarantee that it can actually make money. Nasdaq is extending its net zero pricing
model in “its determination to attract liquidity”. While this is to be applauded, new venues need to understand why some
stocks fragment more than others and focus on these. History shows that there are no winners in wars of attrition. In
Fidessa's view it is far better to find a niche and expand than it is to attack on all fronts.
All data © Fidessa Group plc.
All opinions and data here are entirely the responsibility of Fidessa Group plc. If you require more information on
the data provided here or about FFI, please contact: fragmentation@fidessa.com.
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