Banks to challenge LSE with rival trade reporting system

Ten City banks, thought to include Citigroup, Deutsche Bank, UBS and Merrill Lynch, are working together to set up their own system for the collection and sale of trading data that would by-pass those operated by the London Stock Exchange (LSE) and other European exchanges.

According to press reports, the banks are holding preliminary talks about setting up a trade reporting system that will take advantage of the changes introduced by the EU's Markets in Financial Instruments Directive (MiFID), which is expected to be implemented in November 2007.

At present, all trades must be reported to the LSE or a recognised exchange, regardless of whether an exchange's systems were used for the transaction. The LSE and other exchanges charge brokers for this service and also for access to the trading data they then provide.

Source: Finextra


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