The markets in financial instruments directive may have been more of a damp squib than an explosion when it took effect in earnest on Bonfire Night, November 5, but Europe's stock exchanges know its impact on their trading businesses may be nothing short of spectacular over the next five years.

The directive, which outlaws rules that required banks, brokers and fund managers to use exchanges for trading and trade reporting, represents the biggest direct challenge to European exchanges' trading, trade reporting and data revenues in their history.