Mostly… fixed income and cross product eTrading

June 29, 2007

Furse warns over Project Turquoise

Filed under: etrading, Mifid — holky @ 6:39 am

EFN says that Clara Furse, chief executive of the London Stock Exchange, has publicly warned that Project Turquoise and MiFID could reduce liquidity and raise costs for investors. 

She also dismissed the claims by Project Turquoise that stock exchange fees were a significant part of the overall cost of trading, and their claims that their mutually-owned structure was superior to that of the LSE;  claiming exchange fees account for just 4p out of the average £6.50 average cost of trading £1,000 worth of shares on the LSE – or about 60 basis points – compared with 85p in commissions charged by brokers and 60p in market impact, adding “Even if we offered our services for free, we would only reduce the overall cost of trading on the LSE by 4p. That is a small price to pay for the efficiency and liquidity that we provide.”

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