[Richard Berry]

If you have any questions on the crossover between retail and institutional infrastructure, I’m hosting a panel at The Broker Club Conference tomorrow with some people who know what they are talking about:

– Steve Rodgers, CTO, Beeks Group
– Richard Stoker, Head of Retail EMEA, CME Group
– Will Winzor-Saile, Execution Analytics and Architecture, Rothschild & Co Redburn

On the panel “From Retail to Institutional: One Market, One Infrastructure”, we will be discussing how the lines between retail and institutional trading are blurring, and what that means for market infrastructure, data, and execution.

So, if there’s anything you’d like answered, please let me know, and I’ll report back…

[Darren Sinden]

I have a couple of questions:

Can I ask about client classification is there a case for having another client type between outright retail and professional clients?

I believe we used have a category called intermediate before the FCA changed the rules.

The other thing I would ask is how can the ETF market in the UK and Europe be standardized? it confuses the hell out of me.

I haven’t found a single source of truth for the sector around listings, price changes, volumes etc. just a lot of fragmentation. Where as in the US data is much more transparent and accessible.

[Richard Berry]

We had a good chat about this:

On Client classification:

The panel suggested there probably is room for more nuance as retail investors become more sophisticated, but leaned towards simpler rules, better education and stronger broker responsibility, rather than creating a new “intermediate” category.

It was suggested that the current split between retail/non-pro and professional broadly works, with retail investors getting safeguards such as negative balance protection, while professional clients must prove they qualify.

On ETF standardisation:

The panel agreed that UK and European ETF markets are fragmented and confusing, especially compared with the US. The main proposed solution was the development of a consolidated tape, which could provide a more reliable shared source of market data.

A summary of the rest of the panel is below:

A major theme was the growth of on-exchange trading among retail investors and how the launch of smaller “micro” futures contracts has opened institutional markets to self-directed traders, with strong demand for products like Micro E-mini S&P futures.

The panel argued that retail investors are no longer satisfied with purely OTC products such as CFDs and spread betting, and increasingly want direct market access, tighter pricing and transparent exchange liquidity.

The discussion also highlighted the role of infrastructure and cloud technology in democratising market access and how low-latency cloud infrastructure and API-based trading tools are reducing barriers to entry globally, allowing both retail and institutional participants to access sophisticated trading strategies and markets that were previously difficult to reach.

Retail traders are increasingly using tools once reserved for institutions, including algorithms, automation and advanced analytics.

Another key topic was the fragmentation of European equity markets. Retail participation in equities remains lower in the UK and Europe partly because the market structure is overly complex, with multiple venues, fragmented liquidity and inconsistent pricing. By contrast, futures and options markets are seen as simpler and more standardised. The panel suggested that tokenisation and consolidated tape initiatives could eventually simplify access and create a more unified trading environment for both retail and institutional investors.

Options trading was identified as a major growth area and that retail use of options in the US far exceeds Europe, but demand is rising as investors look for more sophisticated ways to hedge risk, generate income and manage volatility. Panellists stressed that options are fundamentally risk management tools rather than purely speculative products.

The panel also discussed the future of 24/7 markets, tokenisation and prediction markets. While there was agreement that round-the-clock trading is becoming inevitable in some asset classes, particularly crypto, panellists felt not every market naturally suits continuous trading. Tokenisation was viewed as a potentially transformative development that could create a single infrastructure layer across multiple asset classes and allow retail and institutional participants to trade in the same environment more efficiently.

Education emerged as one of the strongest recurring themes. Panellists argued that the UK still has a cultural fear of investing and too much cash sitting idle in savings. They stressed the importance of helping retail investors understand risk properly, start small, gain experience and gradually become more sophisticated investors. The consensus was that giving retail investors access to regulated, transparent markets — even if they occasionally lose money while learning — is preferable to pushing them towards unregulated or purely speculative alternatives.

The session concluded with the view that the future market structure will increasingly blur the lines between retail and institutional trading, with shared infrastructure, broader product access, greater transparency and more sophisticated retail participation becoming the norm.

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