Quote MTF, a new pan-European multilateral trading facility (MTF), will have significant liquidity from its 4 September launch after signing up a second market maker, according to board member Gabor Kutas.
The Budapest-based trading venue already counts parent company BRMS Holdings – which also has a majority stake in Canadian alternative trading systems SwiftTrade and Omega ATS – as its first liquidity provider, but the addition of a second, anonymous high frequency market maker will further boost its attractiveness to prospective members, asserts Kutas.
“We have generated a lot of interest among the trading community and are close to adding a number of big institutional banks as members within the next few months,” Kutas told theTRADEnews.com. “The depth of liquidity provided by a second market maker combined with our 0.14 basis points fee for removing liquidity, which is the cheapest in Europe, will help us to attract liquidity from smart order routers.”
Unlike its rivals, Quote MTF will not pay rebates to those posting liquidity.
Turquoise, the broker-backed MTF recently put up for sale by its nine member banks, charges 0.28 bps for removing liquidity, but rebates users up to 0.24 bps for adding liquidity to the platform, based on how much liquidity a member provides. Chi-X, the first MTF to enter the European equity market, currently charges 0.3 bps for removing liquidity and rebates passive users 0.2 bps.
Quote MTF, which launches almost exactly a year after Turquoise and Nasdaq OMX Europe joined competition with Chi-X, Europe’s first lit multilateral trading facility, is able to offer lower trading tariffs in part because of its low cost base. Although, like its rivals, Quote MTF is locating its trading engine in London, the rest of its operations are based in Budapest.
Quote MTF has added Swiss clearer SIX x-clear as a central counterparty alongside European Multilateral Clearing Facility from launch. X-clear will provide netting, collateral management and settlement for all stocks traded on the platform. SIX x-clear currently clears for the London Stock Exchange and plans to clear for a range of MTFs including Chi-X, Nasdaq OMX Europe, NYSE Arca Europe, Turquoise and BATS Europe later this year.
From launch, Quote MTF will trade 10 constituents of the French CAC 40 index. Twenty more NYSE Euronext-listed stocks from the Belgian BEL20, Portuguese PSI and Dutch AEX 25 index will be added the following week.
From 18 September, 11 Nordic stocks listed on Nasdaq OMX exchanges in Finland, Denmark and Sweden will be made available for trading, plus Oslo Børs-listed stocks.
According to Quote MTF’s roll-out schedule, the following three weeks will see the addition of 10 stocks each from the German DAX, Italian FTSE MIB and the UK’s FTSE 100 indices. The remaining constituents of these indices will be available from 16 October.