On 10 August 2009, the European Commission published a preliminary study on the prices, costs and volumes of trading and post-trading of securities in the EU. The purpose of the study, which will be repeated, is to enable the Commission to track the evolution of prices and costs with a view to better policy development.
Data was provided by intermediaries (fund managers, brokers and custodian banks) and providers of infrastructure services (trading venues, central counterparty clearing houses and central securities depositories).
The principal findings of the study are that:
- Volume determines prices. There tends to be much more domestic than cross-border activity, although most infrastructures do have many clients from abroad. Nevertheless these account for much less volume than domestic clients, and costs have been seen to be greater for cross-border transactions than for domestic ones.
- Costs are decreasing. Across financial centres, transaction unit trading costs have been decreasing since 2006, although to different extents for different types of transaction.
View Monitoring prices, costs and volumes of trading and post-trading services, 16 July 2009