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The Trading Mesh

September 2011

The rain in Spain stays mainly on the BME

September 26, 2011 Comments (0)           

 
Interesting contrast last week where the LSE’s market share of the FTSE 100 fell definitively below 50% whilst at the same time BME’s market share in the IBEX 35 remained stubbornly close to 100%.
Both markets are in Europe – check. Both are subject to the MiFID directive – check. Both have significant levels of liquidity – check. So what is going on?
The difference was highlighted at a Fidessa seminar in Madrid last week that brought together key...

Market data and the prisoners dilemma

September 13, 2011 Comments (0)           

 
The prisoner’s dilemma is an aspect of game theory that shows why two individuals might not agree, even if it appears that it’s best to do so.  In its simplest version, two prisoners have to decide whether to assist or betray one another. If they co-operate then they both receive relatively light punishments, whereas a betrayal by one prisoner means that the other is severely punished whilst the betrayer goes free.
It seems like a similar situation is playing out...