Pan-European multilateral trading facility (MTF) Chi-X Europe is among a number of trading venues that has reported substantial growth in Q1 2010, piling further pressure on domestic exchanges, which did not perform as strongly as some MTFs over the period.
Turnover on Chi-X in Q1 2010 was €367.5 billion, according to the platform’s own figures, a 32% increase on Q4 2009, and a 147% rise on Q1 2009’s total of €148.9 billion.
According to Graham Dick, head of business development, Chi-X Europe, part of the reason for the MTF’s solid growth over the last quarter has been an addition of new members from continental Europe and the US.
“One of our key focus points for 2009 was adding US customers, who are starting to trade more aggressively on the platform,” Dick told theTRADEnews.com. “Also, a number of clients that had been reticent to connect to MTFs previously are now starting to connect, which has increased the depth and diversity of flow on the order book.”
Dick added that the recent results should lay to rest any doubts about Chi-X Europe’s longevity. “We are now in a phase where any criticism in terms of sustainability is a weak argument in view of our market share,” he added.
In keeping with Chi-X’s figures, total European trading increased to €2.249 trillion in Q1, a 10.5% growth on Q4 2009’s total of €2.034 trillion and a 31.2% year-on-year increase, according to data vendor Thomson Reuters’ Equity Market Share Reporter.
However, increases in market activity were not consistent across all trading venues. German exchange Deutsche Börse recorded a 7% quarterly turnover increase to €292.05 billion, an 18.3% year-on-year rise from Q1 2009’s total of €246.92 billion, while NYSE Euronext’s Paris exchange had a more modest 3% quarterly increase to €255.43 billion compared to €247.41 in Q4 2009.
Despite an 11% quarterly increase to €303.2 billion from €273.14 billion, the London Stock Exchange suffered a 1.05% year-on-year decrease in turnover.
Some of Chi-X Europe’s MTF rivals have also enjoyed robust growth. BATS Europe, the second-largest
displayed MTF by market share after Chi-X, grew by 44.9% over the last quarter to €102.44 billion, while NYSE Arca Europe grew by 439% to €5.74 billion in Q1 from €1.06 billion in Q4 2009.
However, Turquoise, which was purchased by the London Stock Exchange in January, suffered a 7.5% quarterly decrease to €63.34 billion from €68.43 billion in Q4 2009, and a 17.3% reduction from Q1 2009’s total of €76.63 billion. During Q1 2009, Turquoise was still buoyed by market making agreements it had with its nine investment bank founders. The agreements expired on 13 March 2009, after which the MTF saw a steep decline in its pan-European market share.