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Bridge over ocean
1 May 1996 Financial Analysts Journal Volume 52, Issue 3

Changes in the Structure and Dynamics of European Securities Markets

  1. Alexandros Benos
  2. Michel Crouhy

The European securities markets have undergone many structural changes during the past ten years. This article describes the essential features of the trading structures of six European stock and derivative markets, particularly emphasizing their newly acquired information technology infrastructures. Automated trade execution systems and market making are briefly discussed in order to examine the future of European organized capital markets in view of the possible European Monetary Union of 1999. In the meantime, the competition between exchanges will be tough, although the actual technologies and structures are converging faster than expected. To gain market power, institutions have to make strategic decisions. The ability to exploit them, however, depends ultimately on the self-interest of their members.

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