德意志银行报告－E－economics(1)

Dig[e-mail]ü[e-mail][e-mail]rankfurtamMainGermanyInternet:@db.comFax:[phone]ManagingDirectorNorbertWalterJanuary11,2005No.47e-conomicsDigitaleconomyandstructuralchangeAlternativetradingsystems:acatalystofchangeinsecuritiestradingAdvancesininformationandcommunicationstechnology(ICT)havealteredsecuritiestradinginEurope.Tradingincreasinglytakesplaceinaubiquitouscomputernetwork.Tradingfloorsandtelephonenetworksarelosingimportance.Transactionsareconductedviaelectronictradingplatformsofstockexchangesandalternativetradingsystems(ATSs).Alternativetradingsystemscreateaddedvalueforinvestors.Theyreducetransactioncostsandprovidereal-timeexecutionaswellasaccesstoequitymarketsworld-wideandinnovativeinvestmentcategories.Inaddition,investorscanchooseamongcustomisedmarketmodels.IntheUSAthesuccessofATSsisputtingpressureontraditionalmarketplacestopushaheadwithautomation.Asyet,only10%ofequitytradingontheNYSEand30%ofNASDAQvolumearehandledbythesemarkets’electronictradingplatforms.Thefigureswillrisetoover50%inthecomingyears.Atthesametime,consolidationamongtheATSsiscontinuingandthenumberofbigplayerswillfallbelowthepresentfive.Theirtradingsystem–theorder-drivenmodel–continuestogaingroundand,withNASDAQ’sSuperMontageandtheNYSE’sDirect+,ismakinginroadsintotraditionaltradingvenues.InEurope,thestockexchangeshaveprovedtheirabilitytoinnovate.TheyofferinvestorsthemainadvantagesofATSssuchasreal-timeexecutionandlowtransactioncosts.TheonlyATSswithprospects(andslimatthat)arethecrossingsystemsofferingspecialblocktradefacilities.Buttheirmarketsharewillnotexceed1-2%.NewregulationsnowinthepipelinewillinfluencehowATSscanpositionthemselvesinEuropeandtheUSAinthefuture.DemandsforcompetitiveneutralitybetweenstockexchangesandATSshavebeenmetintheEuropeanUnion’sMarketsinFinancialInstrumentsDirective,whichstipulates“sameregulationforsamefunctions”.TherevisionofthelawonsecuritiestradingintheUSAcouldleadtoasevereshiftinthecompetitivepositionsofstockexchangesandATSs.Thedirectionisnotyetclear.WhileATSswillatbestholdnichepositionsinEuropeanequitytrading,theyhavealreadycapturedupto70%ofindividualsegmentsofthebondmarket.Ifelectronictradeinfixed-incomeproductsistofunctionefficiently,however,theremustbeahighdegreeofstandardisationandsufficientliquidity.Thefuturewillseeindividualtradingplatformsbeinglinkedincreasinglybymeansofstandardisedtransmissionprotocols.Thisshouldresolvecritics’fearsthatATSswillleadtofragmentationofthemarketandofliquidity.Author:MarionMühlberger,[phone]([e-mail])January11,20052EconomicsAlternativetradingsystem(ATS):AnATSisanentitywhich,withoutbeingregulatedasanexchange,operatesanautomatedsystemthatbringstogetherbuyingandsellinginterests–inthesystemandaccordingtorulessetbythesystem’soperator–inawaythatforms,orresultsin,anirrevocablecontract.Source:FESCO/CESR(TheCommitteeofEuropeanSecuritiesRegulators),2000Informa-tionphaseOrderroutingPricediscoveryandexe-cutionClearing&settle-mentProcesschaininsecuritiestradingSource:DBResearchAutomationofsecuritiestrading:evolutionarystagesOnlyperipheralprocessesareautomatedOrdersdisplayedinanelectronicorderbookPricediscoveryandexecutionalsoautomaticIComputer-assistedfloortradingsystemsFrankfurtStockExchange(FWB)IIComputer-assistedtradingsystemsLSE‘sSEAQsystem,Euro-MTSIIIComputerisedtradingsystemsPOSIT,SETS,XetraIVComputerisedstockexchangesystemsEurex,INETSources:Schenk,1997;DBResearchAlternativetradingsystems:acatalystofchangeinsecuritiestradingAdvancesininformationandcommunicationstechnology(ICT)havealteredsecuritiestradinginEurope.Theyhavereducedtheneedforpersonalcontactonthetradingfloororviatelephonenetworks.Tradingisnolongertiedtoaphysicallocationbuttakesplaceinaubiquitouscomputernetwork.InJune2004,9%ofthebondtradingand65%oftheequitytradingofEuropeanstockexchangeswereexecutedentirelyelectronically.1Thenecessarytransactionservicesareprovidedbytheelectronictradingplatformsofstockexchanges(suchasXetraofDeutscheBörseAG,SETSoftheLondonStockExchange(LSE)andNCSofEuronextParis)andbyalternativetradingsystems(ATSs).Thevarioustypesofelectronictradingplatformsdiffer,though,asregardsthenumberofelectronicallyassistedsub-processestheyinclude(seebox).Onlycomputer-assistedfloortradingsystemsdonotfallintothecategoryofelectronictradingplatforms.Incomputer-assistedtradingsystems,securitiesordersaremerelyshowninanelectronicorderbook.Incomputerisedtradingsystems,tradesarealsoexecutedautomatically,whilecomputerisedstockexchangesystemsincludeclearingandsettlementasanintegralpart.Inthisreport,thetermautomationisusedtodenotetheincreasinguseofITintradingsystems.ATSsfacelessstrictrulesthanstockexchangesStockexchangestypicallydisplaythefollowingcharacteristics:Tradingisusuallyconcentratedatacertainlocalityandwithinacertaintimespan.Investorswhoarenotstockexchangememberscanonlypartici