OTC volume drives trading growth in Swedish equities

Burgundy, a Nordic-focused exchange, has reported that almost 50% of trading in Swedish equities was transacted away from domestic exchange Nasdaq OMX Nordic in March.
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Burgundy, a Nordic-focused exchange, has reported that almost 50% of trading in Swedish equities was transacted away from domestic exchange Nasdaq OMX Nordic in March.

According to figures compiled by Thomson Reuters and distributed by Burgundy, Nasdaq OMX Nordic accounted for 50.31% of trading in Swedish stocks in March, worth €37.8 billion, compared to 58.3% (€34.9 billion) in February.

The change comes against a backdrop of a substantial rise in Swedish blue-chip trading to €75.16 billion in March, from €59.92 billion in February.

However, alternative marketplaces were not the beneficiaries of the domestic market's decline, with much volume migrating over-the-counter (OTC). Markit BOAT, a reporting facility for OTC trades, represented 22.55% of the Swedish market in March, up from 18.1% in February.

Traders also reported €4.491 billion worth (5.97%) of Swedish equity trades to the London Stock Exchange (LSE), with €3.86 billion of this total coming from OTC executions. The remaining €631 million constitutes trades that were done on-exchange, but reported to the LSE. In February, 0.66%, or €398 million, of Swedish stock trades were reported to the LSE.

The value of trades made on alternative markets increased from €12.8 billion in February, to €13.71 billion in March, inline with the overall increase in Swedish equities, but market share fell. Burgundy's decreased from 4.32% market share to 3.73%, Chi-X Europe from 10.82% to 9.69%, Turquoise dropped from 2.26% to 2.06%, while BATS Europe declined from 3.99% to 2.78%.

Burgundy initially launched as a multilateral trading facility in May 2009, but recently won approval to be classified as an exchange in order to list a wider range of instruments.

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