Trading platforms

By THIS IS MONEY
Updated:

 

The Daily Mail City team explain the significance of trading platforms and ask if London's trading system is the best.

What are they?

The systems used to buy and sell shares. The choices used to be myriad but they are slowly being whittled down as stock exchanges climb into bed with each other.

Whose is the best?

Depends who you talk to. London's speedy and efficient SETs electronic order book trading system has been breaking all volume records during the market's bull run. Fund managers believe it is flexible, transparent and ensures that every buy or sell order receives maximum exposure, resulting in a seamless and cost-effective execution.

What do others offer?

LSE suitor Nasdaq has a high-capacity streamlined electronic trading platform which allows customers to trade the New York Stock Exchange, AMEX and Nasdaq on just one system. The NYSE had to merge with electronic trading network Archipelago in December 2005 to compete-Archipelago's technology cut trading time from a painful nine seconds to under one.

And the rest?

Seven investment banks including Citigroup, Goldman Sachs and UBS have threatened to create a pan-European trading platform for equities. It is still being devised and could take time. But the prospect of yet more competition was enough to gee up Nasdaq boss Bob Greifeld, who yesterday renewed his bid for the LSE.

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