Impact assessment

Computer trading: a central limit order book for European stocks

Economic impact assessment on the costs and benefits of of a central limit order book for European stocks.

Documents

A central limit order book for European stocks (EIA13)

This file may not be suitable for users of assistive technology. Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email contact@go-science.gsi.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.

Details

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.

Published 31 August 2012