European trading shakeout coming?

We've noted that the future of the many MiFID-driven trading venues in Europe seems a little iffy now that volume growth is anything but assured. But we're still seeing new entrants. The NYSE Euronext launched NYSE Arca Europe, becoming the fifth MTF in the region. It will join the likes of Chi-X, Turquoise and BATS Europe.

Meanwhile, Pipeline unveiled plans to operate a dark pool beginning in the second quarter. ITG already operates such a service as does by Liquidnet and Nyfix. The big issue of course is whether a lasting bear market will set in and push trading volume to much lower levels. There will likely not be enough trades to go around, which means we'll see some consolidation or some new entrants exit the market. Much the same can be said for the even more crowded U.S. market. 

For more:
- here's the FT article

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