Technology is the force behind the liberalisation of the stock trading sector with the Markets in Financial Instruments Directive (Mifid) the enabler, according to the head of Turquoise.
Speaking at Finexpo 2008, Eli Lederman, CEO at trading facility Turquoise, which is due to go live in September, likened the evolution of the stock market to the deregulation of the airline industry.
Turquoise was set up by leading investment banks to take on the local stock exchanges. This was made possible in Europe by Mifid, which ended the concentration rule that had previously meant that local trades had to go through local exchanges.
Lederman said the deregulation of the airline industry had increased competition in that sector in a similar way to Mifid on the stock exchanges."Mifid is to trading what deregulation was to the airline industry," he said.
"The emergence of new technologies is the important thing in increasing competition. It is easy today to assemble the pieces of technology required for an exchange."
Lederman said Turquoise has chosen not to build its platform using off-the-shelf products, but has instead spoken to a number of technology providers in its search for flexible technology.
It has already named Cinnober as the provider of its core trading platform and Apama for its surveillance technology.