Euronext is to roll out a block trading services for large in scale orders in European equities using technology from New York-based AX Trading.
Scheduled for launch in mid-2017, the platform will endeavour to provide safe execution of large block orders by combining a continuous order book with auctions and both conditional and firm order types. Users will be able to source liquidity by disseminating indications of interest to interested participants while addressing concerns over information leakage.
Lee Hodgkinson, head of markets & global sales at Euronext, comments: “We recognise that flexibility and choice are vital in achieving best execution. The new block trading service will therefore complement our core lit market with a sophisticated yet simple way to execute large orders on a truly pan-European platform, minimising information leakage and market impact."
For AX trading, the deal comes three months after the firm raised $20 million to expand its footprint into European and Asian markets. Under the agreement, Euronext will own and operate the new trading platform.
The plans have been previewed as the European exchange operator presents its full year 2016 results, growing net profits through cost-cutting initiatives by 14.1% to EUR197 million despite a 4.3% drop in revenues to EUR496.4 million.