In April 2017, SIX Swiss Exchange conducted the first edition of its new trader survey. Responses were gathered from 135 traders across Europe. More than half (55%) of them see increased regulation, such as MiFID II, as the biggest barrier they are facing in the next 12 months, under which broker crossing networks could face extinction.
MiFID II the biggest hurdle
With MiFID II appearing to be the biggest hurdle in the next year, there is a split between those who are undecided about any changes in the way they trade, and those who say that nothing has changed for them yet. Present throughout the survey was a considerable degree of uncertainty, as 35% of respondents remained undecided as to whether regulatory changes will push them to trade in larger block sizes.
Uncertainty surrounding new regulation and the sheer amount of existing regulation means some traders are taking advantage of a MiFID II free 2017. When asked if the impending introduction of volume caps under MiFID has already caused, or will cause changes in the way traders trade, 17% said they were now trading more actively and with increased interaction with block sized liquidity.
In general, traders polled in the survey were reasonably bullish when it came to their market over the next five years, with the majority (43%) convinced the space would remain stable, 30% more positive stating it would grow by less than 50% and nearly 18% bullishly stating it would grow by more than 50%. A more pessimistic 9% however see the space declining over the next 5 years.
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SIX Swiss Exchange offers the best order book quality in the world for Swiss securities. As the reference market for over 40'000 securities and home market for some of Europe's most important blue chip stocks such as Novartis, Roche or Nestlé, trading participants benefit from outstanding liquidity. In addition, participants of the Swiss stock exchange trade with one of the world's most advanced and fastest trading technology. Find out more on our website and in our participants factsheet.