Will the migration of the Italian Stock Exchange to Tradelect improve the market efficiency and liquidity ?
This was selected as Best Answer Difficult to predict, as at the same time across Europe market efficiency will be challenged by the emergence of an increasing number of liquidity pools and therefore, at least initially, the emergence of an informative imbalance between those players that can access all liquidity pools and those that could not. What we definitely could say is that more direct exchange members trading Italian Stocks and the ability of the recently developed LSE system to handle 3000 messages/sec and to process an order in 10 milliseconds will improve performance and provide much stronger support for the case of liquidity and efficiency staying with the regulated market, than it would have been if the Italian Stock Exchange had stayed independent.
