Nasdaq OMX wins FSA approval as Nyse Euronext prepares to launch Octopus MTF

Nasdaq OMX wins FSA approval as Nyse Euronext prepares to launch Octopus MTF

Nasdaq OMX has won approval from the Financial Services Authority to commence trading as a Multilateral Trading Facility on 26 September. The platform is set to face fresh competition from a new MTF being launched by pan-European rival Nyse Euronext, codenamed Octopus.

Nasdaq OMX Europe will initially open for trading in 25 constituents of the FTSE 100. That will then be followed by a staggered roll-out of approximately 600 European securities to be completed by the end of October.

Charlotte Croswell, president of Nasdaq OMX Europe comments: "We look forward to launching the new platform at the end of September. This has the potential to revolutionise the patterns of trading in Europe with only a single connection."

The FSA approval for Nasdaq OMX coincides with news that Nyse Euronext - which currently trades across European borders - is set to fight fire with fire with the launch of its own MTF, dubbed Octopus, in November.

The new MTF - which be based on Nyse Euronext's Arca trading technology - will begin with a phased introduction of between 400-500 pan-European blue chips. The system will be designed to attract algorithmic traders, using a central limit order book and offer "ultra-low latency in microseconds".

Cees Vermaas, executive director, European sales at NYSE Euronext, says: "This exciting new service complements both our existing market and the block trading facility, SmartPool, giving our customers access to a range of execution solutions, depending on the needs of their flow. In an increasingly competitive marketplace we have a huge advantage in that we already have the client connections and infrastructure whereby our members will be able to access this new MTF."

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