While there has been progress in establishing bond market microstructures
in the region, there continue to be important tasks in the development of bond markets.
A comparison between post-MiFID Europe and the Reg NMS-regulated US market microstructures may help highlight the reasons for such a difference.
However, fragmentation and the market microstructure's effect on the quality of trading is far from predictable without conducting further empirical analysis.
These studies are important because they have several implications for market microstructures
. For example, based on their findings, Amihud and Mendelson maintained that a long non-trading period is the main causal factor of larger pricing errors at the open.
Finally they must not curtail product and service evolution in response to market infrastructure changes and new academic and practitioner research into market microstructures
"Without a strong commitment to understanding how the market microstructures
are changing, I think they are inevitably opening themselves up to potential problems, not least: how do you show best execution?"