Mostly… fixed income and cross product eTrading

October 30, 2006

Banks step up challenge to exchanges

Filed under: 2015, etrading — holky @ 1:49 pm

(efinancialnews) The nine investment banks developing a new European trade reporting service are talking about expanding the scope of the project to challenge Europe’s stock exchanges and clearing houses. The consortium made up of ABN Amro , Citigroup , Credit Suisse , Deutsche Bank , Goldman Sachs , HSBC , Merrill Lynch, Morgan Stanley and UBS said a month ago the platform “will be developed to meet future market demand”. However, sources close to the initiative, called Project Boat, have confirmed that members are looking beyond trade data reporting. One banking source said: “The first phase tackles trade reporting but the investment banks are already talking about phases two, three and four, including trading.”

Investment banks and brokers have become increasingly vocal about the cost of transacting business in recent years as their margins have narrowed in line with spreads. They believe the introduction of the markets in financial instruments directive, the European Commission’s trading rules, in 12 months will enable them to change the equities landscape.

In the 2015 category where Boat is feasibly turning into the equity flavoured Liquidity Hub initiative…



  1. though more turbulence in the mix now …

    (efinancial says) The future of Project Boat, the trade reporting utility being developed by London’s leading investment banks, has been thrown into doubt after it emerged most of its nine founders have been holding talks with a rival.

    Equiduct – a European equity trading and trade reporting service to be launched in the second quarter of next year, confirmed it has had “very positive” feedback from “tier one investment banks in London”.

    Jos Peeters, chief executive of Capricorn Venture Partners, a Belgian private equity firm that owns Equiduct, said: “We have been encouraged by the response.”

    One banking source said: “Equiduct has to do pre and post-trade transparency, anyway, to be recognised as a trading facility so they are thinking they might as well try to sell it on. The majority of the Project Boat banks, with the exception of Merrill Lynch, have talked to them.”

    Project Boat is also backed by ABN Amro, Citigroup, Credit Suisse, Deutsche Bank, Goldman Sachs, HSBC, Morgan Stanley and UBS.

    Equiduct is a relaunch of Easdaq, the failed European exchange. Capricorn Venture Partners bought the rights from Nasdaq when it pulled out of the venture in 2003.

    Comment by holky — November 6, 2006 @ 2:10 pm

  2. […] Boat Hits Big Wave? EFN says a row has erupted between the banks involved in Project Boat over whether the proposed trade reporting system should be a for-profit commercial venture or spun […]

    Pingback by Project Boat Hits Big Wave? « Mostly… — July 24, 2007 @ 6:13 am

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