Diversification of Stock Exchange Trading Platforms

Abstract

With competition among the exchanges to win orders intensifying, exchanges in Europe and the US have continued to implement market reforms and add to their services as a way to attract more traders to their respective platforms. This paper provides an overview of how securities exchanges in Europe and the US have diversified their trading methods in recent years, and posits that accommodating such diversification will become an important way for the Japanese market, where competition to attract new ventures and smaller stocks is building, to improve liquidity and promote trading by a broad range of investors, including institutional investors.

TOPICS: Exchanges/markets/clearinghouses, emerging markets, financial crises and financial market history