SmartPool, the non-displayed liquidity multilateral trading facility owned by global exchange group NYSE Euronext, is adding four new European mid-cap indices to its stock universe.
From January 2010, constituents of the UK’s FTSE All Share, Germany’s CDAX, the Dutch AEX All Share and French CAC All Share indices will be available for trading on SmartPool.
The announcement follows the addition of four other European mid-cap stock indices and mid-caps from the EURO STOXX 600 in August this year and will increase the number of stocks available to trade on SmartPool by 110%.
“Our expansion into offering mid-caps across Europe is proving to be of great value to customers,” commented SmartPool CEO Lee Hodgkinson. “By capturing a diverse pool of liquidity, users of SmartPool regularly achieve price improvement of between 4 to 6 basis points. For smaller securities where liquidity is scarce and implicit execution costs tend to be higher even greater efficiencies can be achieved.
During November 2009, for example, over 30% of trading on SmartPool took place outside the leading European blue-chips.”
SmartPool was launched in February 2009 and includes BNP Paribas, HSBC and J.P. Morgan among its investors. According to figures from data vendor Thomson Reuters, SmartPool traded €174.5 million in November.