Common standards will be introduced throughout the EU for securities settlement and for CSDs to meet these objectives. Proposed regulations covering CSDs will complete the European regulatory framework for securities markets. Trading is already regulated by the Markets in Financial Instruments Directive (MIFID and MiFID II), clearing will be regulated by the proposed European Market Infrastructure Regulation (EMIR), and this proposed regulation on CSDs will safeguard the settlement element. In a special Q&A, James Tinworth, funds partner in the corporate practice at law firm Stephenson Harwood, takes us through some of the key questions underlying the regulation.

As skittish investors and continuing uncertainty over the sustainability of higher trading volumes in 2012, there’s a sense of a new world order coming in the electronic trading markets. Equally, technology infrastructure also looks ready to take another leap: putting new pressures on the make-up of equity trading desks. Moreover the continuing search for cost efficiencies is encouraging broker-dealers to outsource middle office functions (though this to date is more advanced in the United States perhaps than it is in Europe). All in all, 2012 looks to ­signal a set of paradigm shifts. Who will be the winners and the losers in the race to meet a new trading future? Ruth Hughes Liley and Neil O’Hara report.

According to the latest figures from Thomson Reuters’ Equity Market Share Reporter service, Orderbook trading volumes of EU and Swiss ­Equity saw a 6% monthly rise in March at €787bn, but €22bn lower than March 2011. With March being an expiry month and a day longer, it is hard to perceive a volume growth trend, says Richard Hills, global head, electronic trading at Société Générale.

Given the inevitable refocus of Deutsche Börse’s market strategy, and given the stop on its planned merger with NYSE Euronext, we thought it would be good to find out what the exchange plans to do in 2012 and beyond. We spoke with Rainer Reiss, managing director, Xetra Market Development at Deutsche Börse to better understand the exchange’s immediate strategic drivers and its new business outlook.

Many commentators agree: execution consulting is the best way for fund managers to receive low-touch (automated) trading with high-touch (personal) service from their broker-dealers. For some broker-dealers it means advising clients on how to execute their orders, including which trading venues to use, when to trade and how much to trade. They will also execute the order, if asked. For others, it means direct contact with the portfolio manager (PM) and becoming one element in the PM’s search for returns. Ruth Hughes Liley reports on the key trends.