Smartpool, a European non-displayed trading venue operated by exchange group NYSE Euronext, will start trading on 2 February 2009, subject to approval by the Financial Services Authority (FSA).
Smartpool will provide block trading services in 14 European markets, including those in which NYSE Euronext operates a primary exchange. The MTF
is also backed by banks J.P. Morgan, BNP Paribas and HSBC. LCH.Clearnet and EuroCCP will provide central counterparty services. Smartpool has been registered by NYSE Euronext as a multilateral trading facility under MiFID and will be regulated by the FSA.
The dark pool will offer routing to NYSE Euronext’s central order book, allowing clients to find matches on Euronext’s lit markets in Lisbon, Paris, Amsterdam and Brussels without revealing any trade information. Market participants who are already on NYSE’s Universal Trading Platform, the exchange group’s single point of access to its cash and derivatives platforms, will have automatic access Smartpool.
As well as offering continuous crossing for stocks at the mid-point quoted on their reference markets throughout the day, Smartpool will also have four periodic crosses at fixed times during the day: a pre-open VWAP cross; two mid-price crosses during the day; and a closing price cross after the primary markets have closed.
NYSE Euronext also expects to launch another MTF, NYSE Arca Europe, in the coming weeks. This will be a lit venue trading in ten European markets, excluding stocks already listed on Euronext’s other displayed venues. It also plans to offer four clearing agents, starting with EuroCCP, followed by European Multilateral Clearing Facility, LCH.Clearnet and Swiss clearer SIX x-clear.