Economic impact assessment on the costs and benefits of of a central limit order book for European stocks.
Since the introduction of the Markets in Financial Instrument Directive (MiFID) trading in the European equity market is more fragmented than in the past. One way to address market fragmentation concerns is to bring in a central limit order book where all limit orders execute according to price and time priority. This economic impact assessment reviews the costs and benefits of such a measure.
This impact assessment was commissioned as part of the Foresight project on the future of computer trading.