FMX|Connect- WWW.FMXConnect.com (Reported on 10/4/2011)

Monthly MTF evolution, September highlights

Source: www.ERDesk.com

MTFs’ share in European stocks were mostly up due to an large increase in volatility (+31% m/m for Dow Jones EuroStoxx 50 VIX) as a result of the ongoing crisis in Europe.

North American ATSs market share in:

Canadian stocks was down 200 bps to 35.3%

US stocks was flat at 21.5%

European MTFs market share in:

OMX 30 stocks was up 330 bps to 30.9%        

SMI stocks was up 320 bps to 33.5%

AEX 25 stocks was up 200 bps to 40.5%

DAX30 stocks was up 170 bps to 33.7%

FTSE 100 stocks was up 90 bps to 49.7%

CAC40 stocks was up 70 bps to 37.8%

IBEX 35 stocks was down 90 bps to 1.4%

News

· Chi-X Europe started a three-month pricing promotion starting October 1, and clients will be allowed to trade Santander, BBVA, Iberdrola, Inditex, Repsol and Telefonica for free once their trades exceed EUR 200m in those stocks within the same month. Chi-X Europe will also increase the rebate paid on passive executions on these securities to 0.30 bps from 0.20 bps. Chi-X Europe CEO Alasdair Haynes said “we are in effect leveling the playing field and hoping to increase liquidity in the half-dozen key Spanish stocks that are constituents of the Euro Stoxx 50 index”.

· Chi-X Australia will launch trading in Australia’s equity market by end-October. Chi-X Australia will use ASX’s clearing and settlement service in a five-year deal. According to the “commercial terms” of the deal, ASX will charge an initial fee of A$10,000 for access application and an annual service fee of A$275,000 for use of “its trade acceptance service” (TAS).

· Chi-X Australia appointed David Trude as an independent director. Trude has 30 years of experience in the stockbroking industry, and has been CEO of Credit Suisse Australia and also board member of the Stockbrokers Association of Australia.

· LSE: Turquoise will allow traders on the platform to choose between four different clearing providers from November, subject to regulatory approval. The clearing providers for this interoperable clearing service include EuroCCP, Cassa di Compensazione e Garanzia (CC&G), LCH.Clearnet and SIX x-clear.

· LSE: Turquoise launched FTSE index options on its derivatives platform, signaling “the next stage in the pan-European expansion of Turquoise Derivatives”. A three-month fee holiday for market-makers was also introduced at the launch, and market makers will be charged 5p per contract, and all other customers will be charged 15p per contract. The clearing fee for options will also be 2p per contract, the same as it is for Turquoise FTSE futures.

· Chi-X Europe will launch four new indices with Russell Investments, named the Chi-X Europe Russell Index (CHERI) series, and Chi-X Europe CEO Alasdair Haynes said that “we strongly believe that, until now, competition has been lacking in the pan-European indexing field.”

· Chi-X Europe’s Director of Regulation has been appointed by LSE as Head of Compliance and Regulation starting in 2012, reporting to CEO Xavier Rolet, according to the Financial Times and Finextra.

· Burgundy reported a record turnover in August, with average daily turnover (ADT) at EUR 179.9m (+45% m/m), and average daily trades at 29,286 trades (+72% m/m).

· ITG will launch its POSIT dark pool in Japan, “a market where there is strong demand for liquidity aggregation given the growing number of liquidity pools and the higher level of average trading costs compared to markets such as the US”.

· SIX Swiss Exchange Liquidnet Service (SLS), the first trading link between a dark pool and an exchange, saw trade volumes reach CHF 138m in July and CHF 227m in August, as cited by the Financial Times. Only 12 of SIX’s 120 participants have joined SLS for now, which linkes them with Liquidnet’s approximately 650 buy-side market participants.

· Liquidnet conducted a survey which found that institutional traders are worried by high frequency trading (HFT), with concerns particularly high in global firms and in US and Europe. Liquidnet founder and CEO Seth Merrin stated that “the survey reveals that there is strong conviction among the vast majority of long-only traders that HFT is a negative for institutional investors trading in large size”.

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