Burgundy predicts increased Swedish fragmentation

Burgundy, the pan-Nordic multilateral trading facility (MTF), has said it expects fragmentation of Swedish equities trading to accelerate in 2010.
By None

Burgundy, the pan-Nordic multilateral trading facility (MTF), has said it expects fragmentation of Swedish equities trading to accelerate in 2010.

According to figures from data vendor Thomson Reuters quoted by Burgundy, over 28% of Swedish blue-chip equity trading was conducted away from Nasdaq OMX, owner of

Sweden’s primary stock exchange, in December 2009, compared to 12% at the end of 2008.

Burgundy said fragmentation will continue apace in 2010 when more Nordic trading firms have completed technical projects that enable further automation of trading.

Burgundy, which launched in May last year, accounted for 2.4% of Swedish equities in December 2009. Its most active instruments were exchange-traded funds XACT Bear and XACT Bull, in which the MTF has had an average market share of 19% since its launch. It also recorded a 6% market share in Volvo, TeliaSonera and SHB, and a 36% slice of Oxigene.

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