Europe is proving particularly fertile ground for digital primary markets because there’s more competition among banks, and electronic trading is more popular than in the U.S.
A growing number of private banks in the region believe that it is necessary for them to include trading functionalities in their mobile apps. Clients apparently demand it and the ability to trade will only enhance the overall digital experience, so they say. Indeed, many private banks offer this functionality at a premium.
The transformation of Europe’s financial markets under the new MiFID II rules that took effect Jan. 3 will be accompanied by swathes of new jargon. Two words will be more important than most: systematic internalizers. That’s the name that banks and algorithmic trading firms will now go by when they trade directly with clients. Regulators created the category to impose some rules on the unregulated trading that happens away from public markets, yet exchanges complain that SIs are likely to increase the amount of over-the-counter trading. Banks aren’t complaining.
His words don't carry a fraction of Fed Chair Janet Yellen's power to move markets; nor do his actions possess the strength of Haruhiko Kuroda's balance-sheet maneuvers at the Bank of Japan. He isn't an intellectual in the mold of economist Andy Haldane at the Bank of England, or Raghuram Rajan, the former governor at the Reserve Bank of India.