Chi-X Europe Limited, the first live, pan-European equity multilateral trading facility (MTF), today announced that it is successfully trading, clearing and settling the top five component stocks of the OMX Stockholm 30 index, and plans to introduce the remainder of the indices' names by the end of the month.
The first stocks trading on Chi-X Europe are:
- Ericsson 'B',
- Volvo 'B' AB,
- Atlas Copco 'A' AB,
- TeliaSonera AB and
- Hennes & Mauritz 'B' AB
"Since launching almost one year ago, we have introduced trading services for many of Europe's most heavily traded equities, and are pleased to extend coverage today to these top Scandinavian names," commented Peter Randall, CEO of Chi-X Europe Limited. "Chi-X Europe participants have regularly enjoyed price improvement and significantly lower trading costs. We remain encouraged by our early success, and believe that Chi-X Europe will continue to bring considerable execution quality benefits to the trading community through our cheaper, faster and smarter model."
The introduction of trading in Swedish stocks on Chi-X Europe marks a significant milestone for trading in the Scandinavian markets. Currently, trading Swedish stocks on the Stockholm Stock Exchange costs an average of 1.07 bps*, compared to Chi-X Europe's 0.05 bps cost (based on a passive/aggressive rebate ratio of 50:50).
Central counterparty services have previously not been available for Swedish equities, but with today's announcement, clearing and settlement for the OMX Stockholm 30 component stocks will be centralised via Fortis' European Multilateral Clearing Facility (EMCF) entity. Trades in these stocks will be settled in the Nordic Central Securities Depository, and will be fully fungible for clients whether traded on Chi-X Europe or on the primary market. With this new structure in place, overall trading, clearing and settlement through Chi-X Europe and EMCF is anticipated to be more than 20 times cheaper* when compared to the current market infrastructure.
* Based on Instinet Europe Limited's analysis of trading, clearing and settlement costs.