Chi-X Europe, a pan-European alternative trading venue, launched Chi-Delta, its non-displayed order book, on 25 May, offering free execution for those posting liquidity as part of a promotion.
Passive execution on Chi-Delta will be free until 31 August, while immediate-or-cancel orders will be charged at 0.30 basis points. Access to Chi-Delta will be automatic for existing Chi-X members and market data will continue to be free via the Chi-X data feed.
The Chi-Delta dark trading facility will run in parallel to the Chi-X Europe displayed trading platform, and will use the MiFID reference price waiver to exempt it from publication of pre-trade data and retain anonymity for those orders that do not meet large-in-scale size constraints under MiFID.
Securities prices on Chi-Delta will be sourced from the relevant primary market. This is expected to change in the near future, as Chi-X is seeking regulatory approval to use a consolidated European best bid and offer for its source of reference prices. Mid-peg matching and minimum quantity orders are also available on the platform.
“The ability to execute natural liquidity at the mid-price, coupled with Chi-X Europe’s low trading fees, provides participants with the potential to make significant basis-point savings by trading on both the Chi-X Europe visible order book and Chi-Delta, whilst minimising market impact,” said Hirander Misra, chief operating officer, Chi-X Europe, in a statement.