Chi-X(R) 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.
About Chi-X(R) Europe
Chi-X Europe Limited, a majority-owned, indirect subsidiary of
Instinet Incorporated, is an FSA-authorised securities firm operating
as an MTF (Multi-Lateral Trading Facility) for the trading of the
component stocks of the FTSE 100 (British), AEX 25 (Dutch), DAX 30
(German), CAC 40 (French) and SMI 20 (Swiss) and, by month end, OMX
Stockholm 30 (Swedish).
Chi-X Europe´s low-cost, streamlined model is designed to help
participants achieve ultra-low execution, clearing and settlement
costs. Benchmark tests showed the Chi-X Europe operating model to be
up to 10 times faster(+) and significantly less expensive than
Europe´s traditional equity exchanges. Chi-X Europe disseminates
market data to clients directly and via third-party market data
vendors at no cost, and trade reporting is available for a low monthly
fee. For more information, please visit www.chi-x.com.
(+) Based on Instinet Europe Limited´s exchange linkages
performance measurement statistics for average DMA order messaging in
June 2007. These Instinet internal figures are for round-trip latency
message acknowledgement based on sending an average number of messages
to the exchange system and obtaining a response back to Instinet´s
system over the course of a normal trading day. They are provided for
illustrative purposes only and are not intended to represent an
independent performance measure of latency. Market volatility and
volume may affect actual performance.
About Instinet
Instinet is a global securities firm, providing the world´s most
sophisticated fund managers with the necessary trading tools, ATS
platforms and global agency liquidity to achieve a high quality trade
execution in more than 80 securities markets around world. Acting
solely as an agent for its customers, Instinet seeks to improve
institutional investment performance and lower overall trading costs
through its various front-end trading systems, securities crossing
networks, smart-routing technology, algorithms, commission management
programs and investment research products. Instinet, through its
subsidiaries, operates a wide array of ATS platforms around the world,
including CBX(SM) in the United States, JapanCrossing(SM) in Asia and
Chi-X(R) in Europe, Canada and, soon, Australia. The firm, which is a
wholly-owned subsidiary of Nomura Holdings, Inc., has offices in North
America, Europe and the Asia-Pacific region. For more information,
please visit www.instinet.com.
(C)2008 Instinet, LLC. All rights reserved. INSTINET is a
registered trademark in the United States and in other countries
throughout the world. CHI-X is a registered trademark in the UK and
Europe. Approved for distribution in Europe by Chi-X Europe Limited,
which is authorised and regulated by the Financial Services Authority.
Instinet, LLC, member FINRA/SIPC.
