We are at the beginning of the second phase in Europe

Agées barely two years, alternative trading platforms in Europe may well know their first phase of consolidation. The news surrounding the first two alternative operators of the old Continent, Chi - X and Turquoise, suggests. The younger of the two, Turquoise, commissioned the Swiss Bank UBS to find potential buyers. For their part, the shareholders of Chi - X are openly courted by Chi - X Global, a unit of the Japanese Bank Nomura, which already holds more than half of the titles of the operator through Instinet, a broker. Developments that have nothing surprising, according to several analysts. Just look across the Atlantic. "In the United States, there has been an explosion of start-ups to market in the early 1990s, followed by a very strong consolidation, followed finally by the emergence of some new players, explique Jean de Castries, CEO of Equinox Strategy." We are at the beginning of the second phase in Europe. "Petite difference however: use extreme earliness of these operations capital-intensive, if ever they take place. The European directive on markets in financial instruments (MIF), which has liberalised the sector, has introduced a 20 months ago. "What is absolutely certain is that the decline in volumes and crisis have accelerated things", says Jean de Castries. "We have reached a stage where it will choose between winners and losers," said Mamoun Tazi, in MF Global. A certain dance between the shareholders of the platforms will begin. "For the time being, this step two would rather tend to promote Chi - X, which has been successful its breakthrough since its inception in March 2007. His offer was able to attract a stream of orders, to the point that the operator now controls about 20 of the orders passed on the large British Futsee index values.

An aggressive straightening

Conversely, its London-based compatriot Turquoise seems to be this aggressive clearing, which was one of the main objectives of cutting in transaction fees charged by traditional stock exchanges. "Its shareholders believe that its role is completed and that there is more reason to retain an interest in the capital," said Mamoun Tazi. Among the owners, all minority, turquoise, are often the same names as in the capital of Bats Europe, also on the ranks. Bank of investment, and "hedge funds", large brokers, in short, "market levels" for which entries in several infrastructure ranged from itself at the time of the open competition against historical operators, judged too high operating costs. The situation is still not yet optimal in the eyes of all. "For me, the work is not yet complete, estimated Mamou Tazi. Do not reduce competition at this time. "The financial weakness of platforms risk however, clairsemer the landscape still teeming alternative operators. "The question everyone is asking, it is the threshold of profitability of these platforms, point Jean de Castries.". And they are not extremely transparent about it, this is the least that can be said. "Opacity denounced to Balts by several historical scholarship, that competition from new operators takes an unfair aspect, broken prices and of their regulatory status considered it advantageous.