The exchange industry evolution and the impact of Mifid II

This work aims to illustrate the strategies played by major world exchanges in recent years. Furthermore, it attempts to prospect the possible evolution of the exchange industry in the near future, as the implementation of new regulations will lead to new threats and opportunities for all types of trading venues active on all kinds of asset classes. The first section describe the current scenario of the exchange industry, reporting data on exchange volumes, profitability and market performance. Functions and economics of exchanges are then analyzed, recalling their historical evolution and describing main activities composing the actual value chain of stock exchanges, with a focus on competitive analysis and revenues breakdown. More recurrent strategic patterns in the exchange industry are then identified, highlighting the role of M&A deals. The last section is dedicated to new incoming regulations (especially EMIR and MiFID II) and their potential impact on the exchange industry.