In April, Burgundy reached close to 10% of the primary market turnover in Swedish equities – as competition proliferates in the Nordic region, more and more banks and clients are discovering how easy it is to trade on alternative marketplaces such as Burgundy.
As for the Nordic market, April was also a new record month for the industry as a whole, where over 60% of the total volume in Nordic equities was traded outside the primary exchanges. Some critics say that this is bad for the market and that this distorts overall liquidity. Well, nothing could be more wrong, and if you compare the exchange industry with other service industries such as airlines and telecom operators – I believe that few customers would stand up and say that competition is bad. Because that is why we exist, fragmentation is not a disease – it’s all about competition in a protected industry under immediate pressure to shape up and provide more efficient services to our clients. When the cost of trading falls, friction is reduced and liquidity begets liquidity. If you are a customers looking only at the primary exchanges, maybe it’s time you took a closer look and ask your broker if he is connected to the total market or just a shrinking bit.
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