Under internalization, financial intermediaries are allowed to execute orders off the primary market. This practice is still unauthorized in France, Italy and Spain. The MiFID requires, however, Member States of the EU to allow internalization from 2007. This practice raises concerns and constitutes a challenge for European exchanges in terms of order flows, and viable market size.
LESCOURRET, L. (2005). Les bourses face au défi de l’internalisation. Problèmes économiques, pp. 25-27.