NYSE Arca Europe, a European multilateral trading facility (MTF) backed by global exchange group NYSE Euronext, has joined the MTF working group to develop a uniform symbology framework for European equities.
The working group was established in October 2008 by BATS Europe, Chi-X Europe and Nasdaq OMX Europe to address the challenges of having multiple stock symbols for European equities across multiple venues.
Broker-backed MTF Turquoise joined the initiative in March, but has since delayed implementation of the symbols from this month until June, based on feedback from its members. The other three MTFs have already implemented the symbology.
The adoption of a common symbology is expected to lower costs by removing back-office inefficiencies and allow smart order routers easier access to venues. It is also considered to be a precursor to the formation of a consolidated pre-trade price source for European securities.
“We believe that enhanced consolidation of market data and more effective smart order routing will be crucial in achieving best execution and choice for clients in Europe,” said Virginie Saade, head of NYSE Arca Europe.