The increased number ofstock trading platformsavailable
today is changing the equities trading industry drastically,
according to Gartner.
Traders must focus on new criteria when selecting trading venues
and must develop new skills to make these decisions said the
analyst. The arrival of what are known as Alternative Trading
Systems (ATSs) means that traders must understand the systems and
the technology required to access them.
"The use of ATSs, particularly for equities trading, is
spreading. Market, technology and regulatory trends are all leading
to a situation where selection of trading venues for each trade
becomes a dynamic choice. Making those choices effectively requires
some particular technologies, but most importantly, a clear
understanding of the benefits and costs of different alternatives
must exist," said David Schehr, research director for Gartner's
financial services research team.
This is relevant in the UK where the
Markets in Financial Instruments Directive has instigated the
development of new trading venues such as
Turquoise.