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Trading Migrates from Stock Exchanges to Alternative Trading Platforms

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There is an insightful report on cnnfn.com about what high-speed computerised trading. The link to video is here.

Basically, the message is that stock exchanges have lost at least 20-30% of their business in selected stocks to non-exchange trading platforms.

Chi-X is the most visible of such non-exchange operators with 30% of trading volume in FTSE 100 stocks. Cost-efficiency is an obvious advantage of using trading facility like Chi-X — transaction costs are lower, much lower … Trading on Chi-X is more than 5 times cheaper than on London Stock Exchange and 10 cheaper than on Deutsche Boerse.

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Written by A.S.

May 7, 2010 at 2:13 pm

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