Alternative trading systems radically change the industry

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Alternative trading systems radically change the industry

Karl Flinders

The increased number of stock trading platforms available 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.





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