Electronic trading is heating up in Europe this summer as Turquoise officially went live with trading in 10 initial stocks and Chi-X Europe’s market share in FTSE 100 stocks climbed to 20 percent.

Chi-X may have the head start in the ATS race, but several new ATS are lining up and readying for launch this year and into next year.

Competition is only going to increase with Bats Trading, Equiduct and the Nasdaq OMX Europe platform being the next in line to launch in Europe.

As more ATSs enter the market and competition ramps up, the London Stock Exchange has said it will cut trading fees and has plans for liquidity provider incentives to garner more algorithmic trading flow.

Equiduct, the Borse Berlin ATS, announced it was moving to a maker/taker model in an effort to reward liquidity providers as it prepares for an upcoming platform launch.

Liquidity is the name of the game for these ATSs and whether or not they can build momentum will be based on not only their pricing structure, but many are also looking to their backers to get things moving in the right direction.

As more ATSs enter the market and trading off-exchange continues to grow in Europe, time and volume will tell which will be successful and what impact that will have on the traditional exchange model.

In an effort to track electronic trading across the growing number of venues, Xtrakter, a fixed income market utility, has begun to track liquidity in the European markets.

Below are the results for transactions processed by Xtrakter during the month of June for equities and fixed income. According to Xtrakter, the results do not include data relating to systematic internalisers (SIs) or data for trades conducted on the LSE stock exchange trading system (SETS).

Equities (over the counter 20.75%)
1. Euronext Paris – 17.87%
2. Chi-X Europe - 9.41%
3. Deusche Kassenverein - 8.99%
4. London Stock Exchange – 7.05%
5. Electronic Share Market – 6.83%
6. Deutsche Borse – 6.14%
7. NYSE Euronext Amsterdam – 6.06%
8. Nasdaq (USA) – 3.35%
9. Virt-X – 2.91%
10. Other venues – 10.64%

Fixed Income (over the counter – 88.3%)
1. Tradeweb (Europe) – 1.8%
2. MTS SPA – 1.66%
3. ICAP Electronic (Europe) – 1.64%
4. Bondvision – 0.66%
5. Euro Global MTS – 0.6%
6. NYSE Euronext (Amsterdam) – 0.59%
7. London Stock Exchange – 0.53%
8. ICAP Electronic (USA) – 0.46%
9. Euro MTS – 0.43%
10. Other venues – 2.40%