Exchange group NYSE Euronext has revealed plans to launch a multilateral trading facility (MTF) to trade pan-European blue-chip stocks. The MTF’s trading model is built around a central limit order book.
The launch is planned for November, when the platform will begin a phased introduction of European stocks. Shares traded will include all components of the major indices not already listed on Euronext markets. Euronext currently offers trading in already offer trading in Belgian, Dutch, French and Portuguese securities.
The technology underpinning the new platform will be based on that used by NYSE’s Arca electronic trading platform, which the group said is designed to offer ultra-low latency.
Post-trade functions will be handled by an as-yet-unnamed provider of pan-European clearing services.
The MTF will be open to all types of traders and is designed to be particularly attractive to high-frequency traders, the group said. Existing members can trade on the platform by extending their membership.
Unlike many of the other pan-European MTFs launched to date, which are regulated by the UK’s Financial Services Authority, NYSE Euronext’s new MTF will be regulated by AFM, the Dutch financial regulator.
“This exciting new service complements both our existing market and the block trading facility, SmartPool, giving our customers access to a range of execution solutions, depending on the needs of their flow,” said Cees Vermaas, executive director, European sales at NYSE Euronext, in a statement. “In an increasingly competitive marketplace we have a huge advantage in that we already have the client connections and infrastructure whereby our members will be able to access this new MTF.”
At present, there are two MTFs – Chi-X and Turquoise – offering pan-European trading services. Nasdaq OMX Europe, operated by the Nasdaq OMX exchange group, is scheduled for launch this month. BATS Europe and Equiduct are also expected to go live before the end of 2008.