19 July 2018
Visit www.gemalto.com

UBS plans European dark pool

09 March 2010  |  8583 views  |  0 UBS plans European dark pool

Swiss bank UBS is planning to launch a dark pool multilateral trading facility (MTF) for crossing orders in European stocks.

The MTF, which needs approval from the UK's FSA, will be a non-displayed orderbook and, as a 100% dark liquidity pool, there will be no pre-trade signalling risk or display of any kind.

The platform will feature central counterparty clearing which the bank says will benefit clients by mitigating risk and reducing settlement costs. Executions completed in UBS MTF will be reported post-trade in real time to Markit Boat and the venue will offer mid-point matching based on the price of the primary market.

UBS says the new MTF will be open to external members, implementing an objective membership access and order prioritisation policy. It will operate with segregated management and supervision, maintaining separation from the rest of the firm's execution businesses and other internal trading desks.

The bank already operates an internal crossing network in Europe called UBS PIN but says the new external non-discretionary pool will support access to a wider array of sources of liquidity for its members. A similar system was launched in the US in 2008.

Tim Wildenberg, head, direct execution services, Emea, UBS Investment Bank, says: "For many years UBS PIN has offered our clients very effective crossing opportunities for matching algorithmic orders with other internal client flow. The new UBS MTF will now give clients access to an additional, even more diverse pool of liquidity. Based on our experience with our Alternative Trading System in the US, we believe the MTF will offer incrementally improved crossing opportunities while still providing reduced signalling risk and measurable spread savings."

UBS is following in the footsteps of Nomura, which outlined plans in December to launch an FSA-regulated dark pool multilateral trading facility.

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

SEC begins overhaul of US equity markets with ban on direct market access

SEC begins overhaul of US equity markets with ban on direct market access

14 January 2010  |  11039 views  |  0 comments
Nomura to launch pan-European dark pool

Nomura to launch pan-European dark pool

14 December 2009  |  5705 views  |  0 comments
FSA fines UBS £8 million for unauthorised trading losses

FSA fines UBS £8 million for unauthorised trading losses

05 November 2009  |  7679 views  |  1 comments
SEC to extend dark pool probe

SEC to extend dark pool probe

09 October 2009  |  7695 views  |  0 comments
EU's MiFID review to look at dark pools

EU's MiFID review to look at dark pools

21 September 2009  |  11908 views  |  0 comments
LSE admits Baikal may fail

LSE admits Baikal may fail

09 September 2009  |  7651 views  |  0 comments
FSA looks into high-frequency trading and dark pools

FSA looks into high-frequency trading and dark pools

04 August 2009  |  12839 views  |  3 comments
Dark pool pricing set to tumble as Bats Europe enters fray

Dark pool pricing set to tumble as Bats Europe enters fray

29 June 2009  |  6058 views  |  0 comments
UBS to launch Hong Kong dark pool

UBS to launch Hong Kong dark pool

18 May 2009  |  7072 views  |  0 comments
Goldman Sachs, Morgan Stanley and UBS in European dark pool pact

Goldman Sachs, Morgan Stanley and UBS in European dark pool pact

08 May 2009  |  10476 views  |  0 comments
UBS launches ATS in US

UBS launches ATS in US

14 May 2008  |  5924 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit http://go.jumio.com/finextraAdVisit https://secure.vasco.comVisit info.nice.com

Top topics

Most viewed Most shared
Calmejane quits Lloyds Bank to join SocGenCalmejane quits Lloyds Bank to join SocGen
11807 views comments | 5 tweets | 7 linkedin
Metro Bank opens developer portalMetro Bank opens developer portal
10036 views comments | 5 tweets | 14 linkedin
Anything Visa can do...Mastercard takes time outAnything Visa can do...Mastercard takes ti...
9694 views comments | 6 tweets | 15 linkedin
Mastercard enlists Worldpay to push Vocalink's Pay by Bank appMastercard enlists Worldpay to push Vocali...
9237 views 19 comments | 14 tweets | 30 linkedin
Hong Kong plans September go-live for blockchain-based trade financeHong Kong plans September go-live for bloc...
9011 views comments | 9 tweets | 17 linkedin

Featured job

Find your next job