The seven banks that founded Project Turquoise last November have stood shoulder-to-shoulder in defense of the putative trading system as it has been hit by criticism, but their fraternity belies their deep-seated rivalry as they fight for market share in their businesses, Financial News Reports.
Competition between the banks for equity research, sales and trading revenue is notoriously fierce. It is set to increase over the next year as their fund management clients turn the screw, forcing the brokers to deliver new, value-added services while driving down costs.
Turquoise is their response to the abolition of rules mandating brokers and banks to use exchanges, but the opening of European trading will bring with it increased pressure from institutions which were previously unable to compete evenly with Europe’s dominant equity dealers.