19.III.3 Technological innovation

Besides market philosophies and market structures, the research shows that technological innovation has been a main factor that explains why EU equity pre- and post-trade transparency regulation increased from ISD to MiFID II. From the ISD to MiFID II four main consequences of technological innovation have been: (1) the shift from phone/telephone to predominantly electronic markets; (2) new venues; (3) new trading possibilities; and (4) the increase in technological infrastructures (performing calculations and operating databases) in making the EU transparency rules work.