Swedish online broker Avanza is to launch a pan-European sharedealing service using a back office service from OM/Morgan Stanley subsidiary Jiway Broker Services.
Avanza says a unified processing infrastructure will enable it to offer retail investors the opportunity to buy and sell securities from many countries much more easily and at lower prices.
The Jiway solution, known as "Back Office for Hire," facilitates post-trade processing for equities and other securities on a pan-European basis. This includes clearing, settlement and safekeeping activities, as well as regulatory reporting and the administration of corporate actions.
Avanza plans to offer on-line retail brokerage services across Europe over the next two years. Avanza has been working closely with Jiway Broker Services to develop an interface to the system, which will provide access to local markets in the EU.
The first launch will be in Germany, in conjunction with Avanza’s opening of retail brokerage services this November. Customers will have access to trading on the Deutsche Börse, the German regional exchanges and the Jiway exchange itself. Thereafter Avanza plans to launch online brokerage services in the UK and Holland in the first half of 2001.
Per Nordlander, CEO of Avanza says the agreement will give the company an advantage over competitors who have acquired local brokers or contracted local system suppliers when expanding into new countries.
Jiway Broker Services is a wholly owned subsidiary of Jiway Holdings. Previously known as OM VPA, Jiway Broker Services provides systems and services to banks and brokerage firms on a ‘white label’ basis, allowing them to customise the client interface. The company's services will be used by sister company Jiway to operate a pan-European stock Exchange for retail investors from November 2000.