To sum up, on the basis of the indicators identified so far, it can be concluded that there still exists a fair degree of heterogeneity in financial development across markets and countries in the euro area.
In analyzing the data, we noted an increased level of participation by high-frequency traders in this space. In response, we undertook a study of HFT in the Government of Canada bond futures market. We used data provided by the Montréal Exchange to understand the impact of HFT on market functioning.11 Our analysis showed that its average effect on market pricing was slightly positive.