This study is significant because it helps to understand the evolution of end-to-end trading and post-trading prices, costs and volumes. The main findings are that the volume determines prices and costs are decreasing.
Commissioner McCreevy said “This study is significant because it helps us understand the evolution of end-to-end trading and post-trading prices, costs and volumes. It confirms the positive impact on competition of the Markets in Financial Instruments Directive and the Code of Conduct on clearing and settlement."
Main findings:
Volume determines prices: As regards the data from the full value chain covering 2006, which will form the base for future monitoring, evidence from throughout the value chain highlights that volume is the single most important determinant of unit price. While there is significant cross-border activity, domestic activity is much larger.
Costs are decreasing: As regards the data from providers of infrastructure services, which covers both 2006 and 2008, building on the diverse picture of infrastructures in 18 financial centres, the following general observations can be made. First, across financial centres, trading costs in terms of costs per transaction have decreased significantly since 2006. Second, CCP clearing cost per transaction has decreased significantly since 2006. The picture is more diverse for CSDs. In some centres, costs have decreased while in other centres they have increased.
© European Commission
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