Project Boat , ICAP and LSE
Tit for Tat , interesting development in the world of trading:
Banks aim to challenge exchanges
A group of Europe’s largest banks yesterday unveiled plans for a user-owned electronic bulletin board that could seriously challenge stock exchanges’ dominance of equities trading across the continent.
The move, which could break the quasi-monopolies in trading and post-trading services, was prompted by MiFiD, new regulation from Brussels aimed in part at promoting the type of competition that increasingly is a characteristic of the US equities market but which has so far eluded Europe.
The platform, known as Project Boat and set to open for trading when MiFiD takes effect in November 2007, will be a bulletinboard for the reporting of trades which occur off-exchange.
Icap and LSE held merger talks
Icap, the UK-based inter-dealer broker, and the London Stock Exchange spoke with each other three times over the summer about a possible merger but Icap ended the discussions about three weeks ago.
The two companies began discussions about a merger in June. It is understood that Michael Spencer, Icap chief executive, ended the talks three weeks ago because of concerns that the LSE’s share price – boosted in recent months by takeover speculation and strong earnings growth – was too high, and would dilute the value held by Icap’s shareholders.
If the two companies were to merge, the LSE could expand its equities platform to include foreign exchange and derivatives, among other products, in which Icap is a world leader. Icap could participate in the equities markets, thereby capitalising on the LSE’s rapid growth.
via FT
Update 22/11/2006: “death knell for exchanges’ heyday”
Update 15/11/2006:Banks to co-operate on share trading SHOCK at Alphaville
Update 15/11/2006:LSE down nearly 10% “on concern over increased competition” in European Exchange Shares Drop as Banks Set Up Trading Platform