Friday February 13, 04:48 PM
FACTBOX - New trading venues in Europe
Feb 13 (Reuters) - The London Stock Exchange named former Lehman Brothers (NYSE: LEH - news) banker Xavier Rolet as its new chief executive on Friday, to address the twin challenges of rising competition and weak financial markets.
Following is a summary of new pan-European trading ventures:
Chi-X Europe
-- The first pan-European equity multilateral trading facility (MTF) began live trading in March 2007, aiming to take on Europe's three major exchanges with its faster and cheaper trading engine.
It has taken about 20 percent of trading in FTSE 100 index constituent stocks by paying for liquidity -- paying 0.2 basis points for orders that add liquidity and charging 0.3 basis points for orders that remove liquidity.
Chi-X Europe is owned by Nomura Holdings (N33.SI - news) ' broker agency Instinet and some 14 financial institutions. It offers electronic order book trading as well as clearing and settlement for more than 700 stocks and exchange-traded funds (ETFs) in more than 10 countries.
Euro-Millennium
-- U.S. broker Nyfix launched the third dark-pool equities-trading platform Euro-Millennium in March 2008.
It counts investment banks BNP Paribas (Paris: FR0000131104 - news) , Citi, Credit Suisse , JPMorgan, and UBS (Virt-X: UBSN.VX - news) , as well as fund houses Allianz, Baring, CA Cheuvreux, DWS, Insight, Resolution and Schroder as members of its advisory board.
Dark pools allow banks and institutional investors to execute big orders anonymously to limit market impact. U.S. broker Investment Technology Group Inc, launched dark pool Posit in 1998 and Liquidnet started its services in Europe in November 2002.
Turquoise
-- Backed by nine investors including Goldman Sachs (NYSE: GS - news) , UBS and Credit Suisse, the pan-European cash equities venture rolled out its trading platform in August 2008.
In November, it said it accounted for 5.2 percent of trading for FTSE 100 stocks and 5.4 percent of German DAX equities.
Turquoise, an MTF that emerged owing to a change in European Union financial regulations, cut its tariffs as of Feb. 2, fostering further competition among alternative exchanges.
Nasdaq OMX (NASDAQ: NDAQ - news)
-- The U.S.-Swedish exchange was launched in September, featuring trade in equities, derivatives, debt, commodities, structured products and ETFs in more than 30 countries. It trades about 300 of Europe's most actively traded shares.
It was the first trading platform to route to other trading venues to offer access to better prices.
Project SmartPool
-- NYSE Euronext announced the first alternative trading venture designed for large blocks of shares by a European exchange in October 2007. The trading venture allows users to trade without disclosing their identity or the size or price.
The system was developed in partnership with BNP Paribas and HSBC (LSE: HSBA.L - news) .
BATS Europe
-- Backed by 11 investors including Citi, Credit Suisse, and Deutsche Bank (Xetra: 514000 - news) , the U.S.-based system launched in 2008, trading 10 London stocks including Barclays (LSE: BARC.L - news) , HSBC and Royal Bank of Scotland (LSE: RBS.L - news) .
Credit Suisse was the first to execute a a live trade via BATS Europe.
Liquidnet Europe
-- The platform, which supports trading among fund managers, went live in November 2002 as the first buyside dark pool trading venue.
Its trading volume nearly tripled to $24.4 billion from a year ago.
SWX Europe
-- Swiss Exchange bought electronic trading platform Virt-x in late 2002 and later renamed it SWX Europe. It offers trading of about 300 top blue chips in Europe.
ITG Posit Europe
-- Agency-broker ITG launched Posit in Europe in 1998.
(Compiling by Daisy Ku and Catherine Bosley, editing by Will Waterman) Keywords: LSE/TRADING Keywords: LSE/TRADING
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