Barriers

The FT reports on the manouvering of the LSE to prevent new upstart exchanges trying to use its liquidity and depth to support their activities.

Nasdaq OMX Europe has hired Citi to provide an “order routing” service that takes any orders that cannot be fulfilled on Nasdaq OMX Europe’s order book and seeks out a market where they are more likely to find matches – including the LSE and other alternative platforms.

In response, the LSE now plans to introduce a way of distinguishing between orders that come straight through to the exchange and those that arrive through order routing from competing platforms. It will then charge a different tariff for orders that arrive from a competing platform.