Burgundy, a multilateral trading facility (MTF) for Danish, Finnish and Swedish equities, will offer members a choice of clearing houses from May 2012, bringing full interoperability to the largest markets offering trading in Nordic stocks.
Subject to regulatory approval, Burgundy will offer customers the ability to clear trades with Swiss central counterparty (CCP) SIX x-clear, in addition to its incumbent clearer EMCF.
“The ability to offer another clearing house to the trading participants will further improve our competitive offer in line with our aim to lower cost of trading on equity markets,” said Olof Neiglick, CEO of Burgundy, adding that the addition of a third CCP, possibly LCH.Clearnet or EuroCCP, would be done in line with customer demand.
Burgundy’s plans will mean that from next year, the vast majority of trading flows in the Nordic region will be subject to clearing choice.
Nasdaq OMX Nordic, which operates domestic markets in Denmark, Norway and Sweden, plans to offer clearing operability between EuroCCP, SIX x-clear and EMCF from April 2012.
Chi-X Europe, the MTF which accounted for 17.2% of trading turnover in the three Nordic markets in September according to data from Thomson Reuters, plans to launch four-way interoperability from next year, while London Stock Exchange-owned MTF Turquoise will offer clearing choice between EuroCCP, SIX x-clear, LCH.Clearnet and Italian clearing house Cassa di Compensazione e Garanzia from November 2011.
BATS Europe was the first MTF to launch clearing choice, launching its preferred interoperable model in June this year.
The London Stock Exchange is regarded as the first bourse to offer clearing choice, with the addition of SIX x-clear in September 2008.