Burgundy, a multilateral trading facility (MTF) for Nordic stocks, will begin trading in the first week of May, starting with Swedish blue chip stocks, and expects to complete a full roll-out of Nordic blue chip stocks by June.
The platform took a step closer to its launch last week by appointing European Multilateral Clearing Facility (EMCF) as its central counterparty, which it hopes to have in place by October this year.
EMCF, which is majority-owned by the Dutch government, signed an interoperability deal with SIX x-clear last week that will allow MTFs to offer their members a choice of clearing services.
“We have the capability to support multiple CCPs but it will be up to the big users of the platform whether they think having more than one CCP will be beneficial,” Olof Neiglick, CEO, Burgundy, told theTRADEnews.com.
Neiglick also noted that interest in the platform has been “amazingly strong”, and he is sure that Burgundy’s consortium of 14 owners, consisting of large Nordic banks and brokers, would provide a solid base of liquidity on the MTF even though there are no specific agreements for them to do so.
“The owners have a very strong incentive to put business on Burgundy, so we are confident they will ensure price formation from the start,” he said.
More functionality, including order types and details of Burgundy’s maker-taker pricing structure, is expected to be announced at the beginning of March.