Burgundy, a multilateral trading facility (MTF) for Nordic stocks, has decided to launch central counterparty (CCP) clearing on 9 October following a review of trading participants’ readiness to use the service.
The CCP service will be available for the most liquid securities traded on Burgundy and will clear Swedish and Danish large-cap stocks, Finnish large and mid-cap stocks and constituents of Norway’s OBX Index of the country’s 25 most liquid stocks.
The CCP will be introduced in two steps. On 9 October, three instruments from each of the four Nordic markets will be available for clearing, with the remainder introduced on 19 October.
Trades on Burgundy will be cleared by pan-European post-trade provider EMCF, which also clears for Chi-X Europe, BATS Europe, Nasdaq OMX Europe and Quote MTF. Burgundy aims to add more clearers to the service.
In addition to preparing for the CCP launch, Burgundy is planning a number of operational changes. On 5 October, the MTF will introduce a maximum fee for trade reporting of €7.50. On the same date, it will also change the closing time for trading Swedish exchange-traded funds to 17.20 from 17.30 and introduce two new Finnish stocks – Sanoma and Talvivaaran. On 26 October, Burgundy will implement Federation of European Securities Exchanges ‘table two’ tick sizes for the most-traded Swedish equities.
Burgundy, which launched in May, now trades almost 600 Nordic stocks. For the week ending 25 September it had a 2.68% market share of trading in Sweden’s OMX S30 index, but less than 0.01% for Norway’s OBX, Denmark’s OMX C20 and Finland’s OMX H25, according to the Fidessa Fragmentation Index.