European alternative trading system Instinet Chi-X has been granted a trade reporting licence by the UK's Financial Services Authority to help clients meet post-trade transparency requirements under the Markets in Financial Instruments Directive (MiFID).
Effective immediately, Chi-X Europe will offer off-exchange trade reporting for a monthly fee of £210 per client connection. There will be no additional charges for market data, licence fees, data feed fees or message or volume traffic.
Under the Trade Data Monitor licence, Chi-X Europe will provide a real-time, FIX 4.4 trade data feed to participants and vendors and will receive submitted trade reports via the same format. In order to provide complete post-trade transparency, Chi-X Europe says it will handle trades, trade corrections and trade cancellations, as well as the delayed publication of block trades.
Hirander Misra, director of Chi-X Europe Limited, states: "We believe that the combination of no cost market data and flat fee trade reporting with Chi-X's faster, cheaper and smarter trading and clearing model makes it an extremely viable alternative for European investors."
The launch of the new service comes a month after the release of first batch of trade stats from Chi-X which indicates that the new alternative trading platform is succeeding in attracting a significant minority of trading in the largest shares listed on the Dutch and German stock exchanges.
It also comes ahead of an anticipated new service from the Boat collective of investment banks, which says it will start reporting two-thirds of the EU's off-exchange share trades when it launches next month. Similar offerings are being prepared for launch by Europe's incumbent equity market operators.