SIX Swiss Exchange and Liquidnet have launched a non-displayed block trading platform designed to allow buy-side market participants to execute large trades with one another in both Swiss and other European equities.
Through the SIX Swiss Exchange Liquidnet Service (SLS), SIX Swiss Exchange members can now direct executable block orders to Liquidnet, enabling the liquidity in Liquidnet's global institutional crossing network to interact with block liquidity delivered directly from SIX Swiss Exchange members. Buy-side participants will see no discernable difference between block orders from buy- or sell-side sources, all of which are anonymous.
Rolled out with some 3,000 equities in Switzerland, the UK, France, Germany and the Netherlands, SIX Swiss Exchange estimates that the new venue will typically deliver between five and 70 basis points of direct price improvement. All trades conducted through the link will be based on the mid-point price of the primary exchange. More equities markets are to be added over time.
The SLS platform is operated by SIX Swiss Exchange under the SIX Swiss Exchange rules. Liquidnet will act as an intermediary between Liquidnet customers and the SLS; the firm is also providing the IT for the platform and supplementary services.
“This is an important step for Liquidnet, underlining the firm's vision of a market structure that properly serves the differing needs of institutional investors through creating a unique wholesale market,” said John Barker, managing director of Liquidnet Europe.