Chi-X Europe has started trading, clearing and settling five of the top OMX Helsinki 25 component stocks. The pan-European equity multilateral trading facility (MTF) also plans to introduce the remainder of the index’s names by the end of the month.
The five initial stocks are Fortum Ord, Nokia Ord, Sampo, Stora Enso R Ord and UPM Kymmene Ord.
According to data from Instinet, trading Finnish stocks on Chi-X will cost 0.05 bps (based on a passive/aggressive rebate ratio of 50:50) compared to 0.78 bps on the Helsinki Stock Exchange.
Investors who trade Finnish stocks on Chi-X will also be able to centralise clearing and settlement for the OMX Helsinki 25 component stocks via Fortis’ European Multilateral Clearing Facility.
Trades in these stocks will be settled in the Nordic Central Services Depository and will be fully fungible for clients whether traded through Chi-X or the primary market. Chi-X believes that using this structure could be up to 12.5 times less expensive than the current market infrastructure.