New Game, New Players

And the announcement comes not a moment too soon. The European markets have entered the second phase of liquidity fragmentation. The first phase saw the rise of the first generation of pan-European multilateral trading facilities (MTFs)-the Chi-X Europes and Turquoises of the world. They are based either in the City of London or Canary Wharf, and regulated by the U.K.'s Financial Services Authority (FSA).

Now, however, Budapest is taking a swipe at London's market dominance with a new MTF, dubbed

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