Pan-European multilateral trading facility (MTF) Chi-X Europe has announced that it will start trading international depository receipts (IDRs) on its platform from next month.
On 3 September, the London-based MTF will offer trading in 50 IDRs across 12 countries including Russian energy giant Gazprom, Taiwanese electronics firm Hon Hai Precision Industry, the State Bank of India and Korea-based Samsung Electronics.
Depository receipts are a type of derivative that represent a specific number of shares in the underlying stock of a company. They are typically used by investors that want to gain exposure to overseas securities without having to trade via members of a stock's primary listing venue.
Chi-X Europe's IDR segment will be available for participants between 08.15 until 15.30 UK time. Clearing services will be provided by pan-European central counterparty EMCF.
UK-based investors can currently trade foreign securities via the London Stock Exchange's International Order Book, which gives members access to depository receipts from 46 countries that are listed on the exchange. The LSE estimates that its IOB turns over €400 billion per year.
In July, exchange group NYSE Euronext launched NYSE Euronext London, another venue for international companies that want to list in London, but it has yet to attract any listings.