Probably the most notorious impact of MIFID I was the end of the so called "concentration rule" – in most EU countries, trading orders had to be routed to the national exchanges. This directive allowed for other firms to create Multilateral Trading Facilities (MTF), where trading could be done in any security listed in EU national exchanges (and in other EU venues), giving way to a drastic change in the competitive landscape of the trading venues business.
And indeed, when MIFID I came into force in November 2007, a set of MTF were launched. From such, I would highlight the following:
- Apr 2007 - Chi-X Europe (by Instinet)
- Aug 2008 - Turquoise (by a set of 9 investment banks)
- Sep 2008 - NASDAQ OMX Europe (by NASDAQ)
- Oct 2008 - BATS Europe (by BATS)
- Mar 2009 - NYSE ARCA Europe (by NYSE Euronext)
- Apr 2009 - Equiduct (by Börse Berlin)
I could not find free data on the main venues' market share in European equities trading since 2006. Therefore, I took the liberty to include a graph from The Economist (A bigger bang - MIFID 2, from 26 April 2014) that gives an idea of the impact of MIFID I.
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