22 April 2018
https://www.avoka.com

Instinet vows to undercut European exchanges with new Chi-X platform

02 October 2006  |  12158 views  |  0 stock quotes

Interagency broker Instinet is to launch a new automated trading system for European equities dubbed Chi-X.

Operating as an independent subsidiary of Instinet, the Chi-X platform will launch later this year in conjunction with a consortium of financial firms. The operation has been authorised by the FSA as a securities firm operating as an Alternative Trading System (ATS) and MTF (Multi-Lateral Trading Facility under MIFID) and passported into all relevant European markets.

The system is based on the firm's existing Continuous Block Cross (CBX) platform, which is currently used in the US domestic equity market. It has been redeveloped for the European market to help sell side firms address the best execution requirements stipulated by the EU's forthcoming MiFID directive. Instinet boasts internal benchmark tests that show the new platform to potentially be 10 times faster and significantly cheaper than Europe’s traditional equity exchanges.

The VC-owned brokerage has teamed with Fortis to develop low-cost clearing and settlement services for the new facility.

Instinet Chi-X director Peter Randall has vowed to significantly undercut the clearing and settlement fees currently charged by the major European clearing houses and custodians.

"The total cost of trading equities in Europe is significantly higher than other major markets competing for investor capital. Europe needs competition, not consolidation as this leads to innovation, more liquidity and lower costs," he says. "Chi-X will provide institutions with a true high speed, low-cost alternative for trading European equities, and our partnership with Fortis, who offer compression, netting and significantly lower costs, will ensure competition throughout the entire equities trading process."

The new market complies with the open access princicples espoused by the European Commission, says Randall, in that it allows for interoperability with other providers of central market infrastructure, be they central counterparties (CCPs) or central securities depositories (CSDs).

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Wall Street consortium launches alternative system for block trades

Wall Street consortium launches alternative system for block trades

27 September 2006  |  9468 views  |  0 comments
Securities firms launch alternative trading system

Securities firms launch alternative trading system

26 September 2006  |  10252 views  |  0 comments
Icap confirms LSE merger talks

Icap confirms LSE merger talks

25 September 2006  |  9334 views  |  0 comments
Investment banks to establish pan-European trade reporting system

Investment banks to establish pan-European trade reporting system

19 September 2006  |  8489 views  |  0 comments
European exchange price war looms as Virt-x cuts tariffs

European exchange price war looms as Virt-x cuts tariffs

04 September 2006  |  6055 views  |  0 comments
Instinet launches liquidity aggregation algorithm

Instinet launches liquidity aggregation algorithm

28 June 2006  |  7386 views  |  0 comments
Investment banks face turf war with global exchanges - report

Investment banks face turf war with global exchanges - report

07 June 2006  |  7739 views  |  0 comments
European market users call for break-up of siloed exchanges

European market users call for break-up of siloed exchanges

20 February 2006  |  9238 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit https://aciworldwide.webex.comVisit http://go.jumio.com/finextraAd

Top topics

Most viewed Most shared
Top tier banks pass first transactions on trade finance blockchainTop tier banks pass first transactions on...
11225 views comments | 19 tweets | 26 linkedin
TransferWise becomes first non-bank to open settlement account with BofE RTGSTransferWise becomes first non-bank to ope...
9979 views comments | 18 tweets | 32 linkedin
Revolut launches spare change savings toolRevolut launches spare change savings tool
9871 views comments | 14 tweets | 19 linkedin
Barclays Bank sets up tech venture unitBarclays Bank sets up tech venture unit
9055 views comments | 16 tweets | 22 linkedin
Goldman Sachs acquires PFM startup Clarity MoneyGoldman Sachs acquires PFM startup Clarity...
8466 views comments | 9 tweets | 10 linkedin

Featured job

Competitive base, double OTE
London, UK or Paris, France or Frankfurt, Germany (other major cities in Europe considered)

Find your next job