According to TABB Group senior research analyst Adam Sussman, the buy-side in the UK is paving the way toward a more electronic European trading infrastructure.
Sussman draws the following conclusions highlighting major trends in European FIX connectivity in a recent TABB report titled “The Right Connections.”
– The electronic communication of orders to a broker requires cooperation from both buy and sell-sides.
– UK-based asset managers and brokers have more resources to commit to building an electronic infrastructure than European counterparts.
– Northern European asset managers have the lowest percentage of brokers connected via FIX as domestic brokers are less likely to have electronic capabilities.
– As a whole, the European buy-side trades less electronically than US buy-sides; however, with global investment banks shifting their focus to Europe and the impending MiFID implementation, Europe is catching up.