Norwegian sell-side firms DnB NOR Markets and Fondsfinans have implemented new trading software to deal with the increasing level of liquidity fragmentation in the Nordic region’s equities markets.
DnB NOR Markets has selected technology vendor Fidessa's software-as-a-service sell-side trading platform to support its operations globally.
Fidessa's platform includes order and execution management tools, smart order routing technology and connectivity to over 140 trading venues and 2,400 buy-side firms via its global FIX connectivity network, which will enable DnB NOR to handle DMA, care and algorithmic orders for all its clients. The platform is also fully integrated with DnB NOR's back-office systems.
In addition, DnB NOR traders across the firm's offices in Oslo, London, New York and Singapore will have access to a number of Fidessa's trading tools including basket and pairs trading functionality.
“There is a significant momentum among the Nordic countries as increasing fragmentation in the region is prompting brokers of all sizes to reassess their technology infrastructure to ensure that it is meeting their needs” said Mark Holden, new business sales manager for Fidessa in the Nordic region.
Meanwhile, Fondsfinans has installed Orc Software's XG platform for executing directly on trading venues. The Oslo-based trading firm will also use Orc's software to support its proprietary trading and market making operations and has signed a contract based on Orc's licensing subscription model.
“Using the Orc XG services together with the Orc Trading solution, will help make our operations more efficient, while supporting expansion and further development of our execution and trading activities,” said Anders Høyem, head of sales, Fondsfinans.
“With Orc XG we are pleased to deliver the smart order routing and execution capabilities Fondsfinans needs to effectively handle market fragmentation and the unsure regulatory environment we are currently in,” added Peter O BÃ¤ck, vice president of sales Nordic, Orc Software.
Since the start of 2010, fragmentation of liquidity has steadily increased in the Nordic region. According to data vendor Thomson Reuters, Oslo Børs's share of Norwegian blue-chips has dropped to 88.5% from 91.1% in January, while Nordic-only multilateral trading facility Burgundy recorded its second highest month in terms of trading activity in September, trading €1.96 billion worth of Nordic equities.