Earlier this month TABB Group published their new report “European Market Quality: A Metric in Need of a Standard”. Its compelling output based upon robust trading data of transparent venues and primary research from the buy side and brokers.
The report illustrates the need to move focus away from merely considering an exchange’s market share when making critical trading decisions to assessing the relative value of its liquidity or market quality provided by its price discovery process.
Improved market quality is high on our list these days given the increased search costs. Good market quality lowers the explicit costs incurred by the investor through better execution and increases investors’ confidence in the market’s ability to provide a fair price for their asset. Would you really want to trade without this information?
There's plenty more background on market...