NYSE Euronext To Launch European Dark Pool On Feb 2
28 Janeiro 2009 - 4:41PM
Dow Jones News
NYSE Euronext (NYX) said Wednesday it would launch its European
platform for so-called "dark pool" trading on Feb. 2 after securing
approval from the U.K. regulator.
The bank-backed SmartPool platform had been slated for launch
last June, but exchange officials said it was pushed back in
response to changing market infrastructure.
The transatlantic exchange operator is competing with London
Stock Exchange Group PLC (LSE.LN) in Europe to tap the fast-growing
dark pool market.
These are private markets in which buyers and sellers connect
and trade large blocks of equities anonymously.
U.S.-based brokerage Knight Capital Group (NITE) and Pipeline, a
dark pool operator based in New York, also aim to launch European
platforms this year.
Despite the high-profile players targeting the market, dark
pools continue to represent a fraction of overall European equities
trading. Late 2008 estimates put dark pools' market share at less
than 1% of executed trades.
Yvette Roozenbeek, acting chief executive of SmartPool, on
Wednesday downplayed expectations as the platform prepares to
launch next week.
"We plan a controlled and phased roll-out of markets and expect
volumes to develop over time, particularly in current market
conditions," she said in a statement.
SmartPool will begin trading about 1,000 stocks from 15 European
markets. London-based LCH.Clearnet will clear Euronext-listed
stocks, with EuroCCP clearing trades in the other 11 markets.
The LSE's Baikal dark pool platform was delayed after the
collapse of Lehman Brothers, its erstwhile partner. The exchange
continues to target a second-quarter launch.
An LSE spokeswoman said the exchange has been reviewing Baikal's
technology since September, and noted the appointment of several
executives to lead the initiative, including chief executive John
Wilson, a former executive at Lehman and UBS AG (UBS).
SmartPool recently named former Deutsche Bank (DB1.XE) executive
Johanna Danby as chief operating officer, with Charles Armytage,
formerly of Thomson Reuters (TR), joining as senior sales
manager.
The platform is backed by BNP Paribas SA (BNP.PA), HSBC (HCS)
and JP Morgan (JPM).
The impending launch of SmartPool follows the announcement that
the New York Block Exchange, a joint venture between NYSE Euronext
and broker-dealer BIDS Holdings LP, will go live Jan. 29.
NYBX represents the exchange's effort to attract more block
orders - 10,000 or more shares - to its U.S. markets. The platform
gained approval from the Securities and Exchange Commission this
week.
Separately, NYSE Euronext is prepping NYSE Arca Europe, its
European multilateral trading facility.
The unit, which will target high-frequency trading in blue-chip
stocks, is NYSE Euronext's answer to intensifying competition in
European equity trading, where MTFs like Chi-X Europe, Bats Trading
Europe Ltd., Turquoise and Nasdaq OMX Europe have put pressure on
established boerses.
An NYSE Euronext spokeswoman said Thursday there remains no
start date for NYSE Arca Europe.
-By Jacob Bunge, Dow Jones Newswires; 312-750-4117;
jacob.bunge@dowjones.com
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