Pan-European multilateral trading facility (MTF) Chi-X Europe reached 4.7% market share in Spain last month, making significant headway against incumbent exchange Bolsas y Mercados Españoles (BME).
Chi-X Europe, acquired by BATS Global Markets in November, is the only non-BME platform to achieve market share above 1% in the country. The BME’s own share fell to 92.4% in February, down from 96% a year earlier, according to figures provided by Thomson Reuters. BATS Europe held 0.63%, while Turquoise, the MTF majority-owned by the London Stock Exchange, achieved a market share of 0.54%.
Chi-X Europe has run a price promotion since October, providing a rebate of 0.30 basis points paid on passive executions for securities in Banco Santander, Banco Bilbao Vizcaya Argentaria, Iberdrola, Industria de Diseño Textil, Repsol and Telefonica. The promotion includes trading, clearing and settlement costs.
Last month, the platform also increased the rebate paid on passive executions from 0.20 basis points to 0.30 basis points for executions in all IBEX35 securities from 1 February to 31 March. The IBEX35 index comprises the top 35 most liquid Spanish stocks.
Competition in Spain suffered a setback in February when Platforma Alternativa de Valores Españoles, an MTF for Spanish, Portuguese and Latin American stocks, was put on hold by CEO Javier Tordable after failing to find a non-Spanish backer.
However, changes to Spain’s clearing and settlement regime in H1 2011 have removed some of the obstacles for new platforms entering the market. Previously, market participants trading on alternative venues in Spain were required to obtain an identification number from the BME that would have to be sent to its central securities depository Iberclear in order for settlement to occur. But under reforms introduced last year, foreign CCPs can obtain the required identification number directly from Iberclear, simplifying the whole process.
MEFF, BME's derivatives markets, is planning to extend the trading hours for IBEX 35 Futures from 21 May. Trading will take place from 09.00 to 20.00 for these contracts, while the current trading hours, from 09.00 to 17.35 will apply to the rest of the derivatives traded on that market.