Quote MTF launches with first liquidity agreements

Quote MTF, the pan-European multilateral trading facility (MTF), has gone live with liquidity commitments from eight sell-side participants based in the US, UK, Ireland, France and the Netherlands today.

The venue offered 40% equity in return for liquidity, with the providers being given an upfront stake and competing for the remaining portion of that equity based on the amount of flow they provide. Participants will bring directional and arbitrage trading strategies from the investment banking and principal trading businesses. They will be named a few days after the market sees €1 billion traded daily, at which point they will receive their division of equity.

Christian Bower, commercial director, Quote MTF, has said that the platform aims to have a market share of 4-6% of pan-European equity trading, which he believes should exceed €2-3 billion average daily value traded by the end of 2012.

Quote MTF started operating in September 2009 and has since built up the number of instruments on its platform, hired new staff and established connectivity links.

The MTF, which claims to require only a small portion of European liquidity in order to break even, operates a ”no fee, no rebate' model for passive trading in a bid to promote price discrimination for improved trading opportunities. It will continue to cap exchange fees at €14,000 until 2012.

RTS Realtime Systems Group, the trading solutions provider, has announced that it will be providing its global clients with market access to Quote MTF.

To access its trading platform, RTS customers can utilise the firm's automated algorithmic trading solutions, RTD Tango and RTD Tango Trader, as well as the RTD front”end trading system and RTS FIX and proprietary APIs.