BATS Chi-X Europe has pulled out of industry-developed dark pool project Plato Partnership to pursue its internal initiatives.
Plato evolved from collaboration among a number of asset managers and sell-side firms and intends to launch a dark pool, with profits funneled back into research to improve market structure.
Hannah Randall, head of communications at BATS Chi-X Europe, said: “After careful consideration and extended discussions, we have taken the decision to withdraw from the Plato selection process. We fully intend to facilitate large-in-scale trading and we will be unveiling highly competitive initiatives in the coming months.
“These new facilities will be wholly consistent with our strategy of improving the European market for all investors and traders.”
Plato has asked market participants to vote on which firm should provide the technology platform for its dark pool. The initial pool of seven firms included Aquis, Turquoise and Nasdaq, as well as BATS Chi-X Europe.
A statement issued by Plato Partnership said: “Plato Partnership is in the process of selecting a partner who we can work with to develop Plato’s trading utility. While we are making good progress narrowing the field, the process is still ongoing and we will update the market when we have reached a decision.”
A number of market operators have been developing their block trading credentials ahead of the implementation of MiFID II. It is thought caps on dark pool trading will require more trades to qualify for the large-in-scale waiver, as those larger trades are exempt from the proposed caps.