This excerpt taken from the NDAQ 8-K filed Dec 11, 2006.
New MiFID legislation may enhance competition for trading reporting revenues in Europe.
The terms under which business has been conducted in the UK have been the subject of EU directives that have presented opportunities to conduct and publish trades in different ways and on alternative venues. The new MiFID legislation is expected to come into effect on November 1, 2007. This legislation requires all business in securities traded on regulated markets to be published via a reporting venue irrespective of where the trade takes place. This provides the London Stock Exchange with the opportunity to compete for pan-European trade reporting as well as generating a competitive threat for existing trade reporting revenues earned by the London Stock Exchange. The London Stock Exchange will face competition from other exchanges as well as from ECNs and alternative trading systems (including a move towards greater systematic internalization by member firms). This competition may intensify in the near future especially as technological advances create pressure to reduce the costs of trading.