As confirmed, February 4, 2021 will be the first trading day in Swiss equities on the UK MTFs. All MTFs we are a member of can be found on the FINMA-published list, including Aquis, Cboe BXE (formerly Bats), Cboe CXE (formerly Chi-X), Instinet BlockMatch, Liquidnet, Tradeweb, Turquoise and Vitru ITG POSIT.
We believe that up to 40% will be traded on the alternative trading venues listed above. We embrace this change and are prepared to implement it, guaranteeing best execution in accordance with Swiss and European regulation.
A state of the art best execution guarantee goes far beyond a mere effort. It does of course take into account the full cost of execution and not just the trading price. In addition to that, it is important to make sure that volumes traded will not leak information to market makers, that a COP (Client Order Protection) process constantly monitors the liquidity toxicity and can even shut down certain venues if high frequency traders are believed to be in the competition or signaling/information leakage may be too high.
You may want to consider if your broker is ready to guarantee a best execution process, offers full Transaction Cost Analysis and Algorithmic Trading Capabilities and accounts for not just the spread but also the costs of trading.
We would be happy to share our thoughts with you.
For more information please find the link below: https://www.finma.ch/en/news/2021/02/20210203-meldung-uk-handelsplaetze/
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