In one of the biggest developments in the financial sector, world’s seven biggest investment banks would be creating their own pan European share trading platform. Initially the trading would be offered in some of the biggest stocks of Europe for bringing down the costs of buying and selling of shares.
The companies which are coming together are Deutsche Bank, Credit Suisse, Citigroup, Morgan Stanley, Merrill Lynch, Goldman Sachs and UBS. Besides this they would also be looking for business from other brokers.
This comes in response to EU’s MiFID meant for creating a single market in financial services and facilitating cross border trading some of the biggest stocks. It will come into effect from November 2007.
Though the traders of the banks would not be permitted to use the new platform as they would be required to trade over domestic exchanges in case cheaper prices area available but still it is being perceived as a threat to existing European stock exchanges.
