Competition Looms

Exchanges and regulators must brace for increased volumes as ATSes and crossing networks pour in resources, but governments are likely to remain protective.

Alternative trading systems and crossing networks for equities are ramping up their presence in Asia this summer and while the exchanges are not likely to feel the searing heat of competition just yet, they would be wise to heed these harbingers of fragmentation.

Traditional exchanges in the Asia-Pacific region, like those in the US, will eventually face competition for order flow and liquidity from ECNs, alternative trading systems and dark pools, says William Cline, managing partner of global capital markets consultancy Acai Solutions.

However, “the governments here like to keep control of their markets and take a …

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