Retail trade execution platform Jiway has signed up seven leading market makers for its putative cross-border share dealing service. The seven firms represent key European and US territories and are considered critical for ensuring liquidity across multiple markets.
Jiway is set to launch in November 2000, with a target of offering clients best-priced execution in 6000 securities from 8 countries. Designated market makers will be obliged to ensure that the relevant price being traded is not inferior to the equivalent best price on the local exchange. If the local exchange offers a better price, the market maker will be required to match it.
Jiway has signed Letters of Intent with Winterflood Securities and Morgan Stanley Dean Witter in the UK, with Bernard L. Madoff Investment Securities in the US, Commerzbank Securities and Lang & Schwarz in Germany, MSDW France, Sweden's Enskilda Securities, and Van der Moolen Holding in Holland.
Discussions are at an advanced stage with brokers in the Nasdaq, Italian and Swiss markets, says Jiway.
Jiway is a EUR100 million project in which OM Group of Sweden and Morgan Stanley Dean Witter have a 60/40% share respectively. Headquartered in London, Jiway proposes to offer an electronic order and quote driven market providing a single access point for around 6000 US and European shares, alongside custody and corporate action services. The facilities will be made available at first to brokers in the UK, Sweden and Germany, and then to France, Switzerland, Holland and Italy during 2001.
Retail brokers will be able to trade, clear and settle securities listed on Nyse, Nasdaq, London, Frankfurt, Paris, Milan, Amsterdam, Zurich and Stockholm for EUR7 for any order worth up to EUR50,000. There will be no annual membership fee or other fixed charges. Jiway says it will also make its trade data available free of charge.