Prague-based investment bank Wood & Company has become a member of pan-European multilateral trading (MTF) facility Nasdaq OMX Europe to trade stocks listed in the Czech Republic and Hungary.
Wood is the first member from the central and eastern European region to join to take advantage of the Nasdaq OMX Europe’s expansion in the region.
The MTF, owned by global exchange group Nasdaq OMX, started trading the 12 constituents of Hungary’s BUX index and the 12 constituents of the Czech Republic’s PX index from 16 April, slightly later than its initial launch schedule of Q1 2010.
Wood & Company has already executed on the MTF. Its trades were settled by the domestic currency services division of Deutsche Bank, which acts as a general clearing participant for pan-European central counterparty EMCF – Nasdaq OMX Europe’s incumbent clearing house.
“We consider this mandate a huge endorsement of our clearing capabilities and a further milestone in our continuing strategy to grow our service capability in central and eastern Europe,” said Roger Harrold, head of Deutsche Bank’s domestic custody services division, in a statement.
For constituents of the PX index, Nasdaq OMX Europe charges members 1.5 basis points for removing liquidity and pays a rebate of 1 bp for adding it. For BUX stocks, it charges 1 bp for taking liquidity and rebates 0.5 bps for adding it.
According to data vendor Thomson Reuters, Nasdaq OMX Europe accounted for 0.79% of total European trading in March with a turnover of €6.3 billion.