The growing dominance of request-for-quote (RFQ) trading within ETFs is leading many exchanges to evolve their offering in a bid to keep their market share.
Speaking at a recent ETF Stream Breakfast Workshop, Adam Sherlock, head of equity sales Europe at SIX Swiss Exchange, said despite a 50% increase in overall ETF turnover over the past five years, the industry could do more to optimise ETF trading in Europe.
This is one of the key drivers behind SIX’s decision to become the first exchange to offer pan-European ETF trading on its on-exchange RFQ platform – ETF Quote-on-Demand (QoD) Europe – last December.
“The daily ETF value traded over the past five years has – in periods of volatility and spikes – experienced more like 100% growth”, Sherlock said. “However, on-exchange turnover has remained relatively stable during this period, in the high €30-40bn per month. The…
