Multilateral trading facility (MTF) BATS Europe has set a date to introduce trading of depository receipts on the platform's integrated and dark order books.
Scheduled to go live in September, pending regulatory approval and a review of corporate action processing at Dutch clearing house European Multilateral Clearing Facility (EMCF), the list of depository receipts will initially consist of 50 instruments currently traded on the London Stock Exchange (LSE), including Lukoil, Gazprom, Norilsk Nickel, Reliance Industries, State Bank of India and Samsung Electronics.
The BATS Europe smart order routing service will also be made available for onward routing to the LSE's International Order Book and other MTFs. Pricing has yet to be announced, however BATS Europe's CYCLE strategy, launched in January 2010, currently charges 0.5 basis points for routing to displayed venues and 0.3 bps for routing to non-displayed platforms.
Depository receipts traded on BATS Europe will clear through EMCF and will be netted for settlement at Euroclear bank. Available on LSE-owned MTF Turquoise since October 2009, depository receipts will be tradable on rival MTF Chi-X Europe from 3 September 2010.
BATS already trades cash equities and equivalents, as well as exchange traded funds, exchange traded commodities and real estate investment trusts. BATS' most recent expansions included the launch of Irish equities in March and Spanish stocks in January 2010.