Impact assessment

Computer trading: impact of internalisation on the quality of displayed liquidity

Economic impact assessment on internalisation on the quality of liquidity provision.



This economic impact assessment discusses the impact of internalisation on liquidity provision in the US and EU equity markets. It considers 4 potential regulatory measures on internalisation:

  • ‘trade-at’ rule
  • sub-penny pricing for retail liquidity providers
  • minimum size requirement
  • dark pool quote threshold

This impact assessment was commissioned as part of the Foresight project on the future of computer trading.