PARIS (Thomson Financial) - Alternative trading system Instinet Chi-X is to
launch a service for Spanish and Italian blue-chip equities in coming weeks,
subject to regulatory approvals in the two markets, Electronic Trading magazine
reported.
The multilateral trading facility (MTF), a majority owned, indirect
subsidiary of Nomura Holdings Inc's online brokerage arm Instinet Inc, gave a
presentation earlier this month to Spanish equities markets participants,
according to Electronic Trading, a monthly title and web portal from consultancy
A-Team Group.
Initial coverage in Spain will include leading IBEX-35 names such as
Telefonica SA and Repsol YPF SA, the report added. An Italian service is
expected to be close on the heels of Chi-X's entry into Spain.
The moves will follow the launch today of Chi-X's Norwegian and Danish
service, offering dealing in blue-chip names including Norsk Hydro ASA,
StatoilHydro ASA and Telenor ASA in Norway, along with A.P. Moller - Maersk and
Danske Bank A/S in Denmark.
The new expansion will bring the number of European markets served by Chi-X
to 14 from the present nine. Next is Belgium, on July 4, and there are plans for
coverage of stocks in Portugal and Austria, Electronic Trading said.
Chasing some of these "low hanging" markets is unlikely to affect the MTF's
business model, which concentrates on the European markets in which it has
already launched since starting with the UK's FTSE 100 last June, said Scott
Riley, Chi-X operations director.
Speaking at a recent briefing on MTFs at Societe Generale in London, Riley
told Roger Aitken, Electronic Trading's Assistant Editor: "For some reason
everybody wants 14 markets (in Europe). If people are excited about 14 markets
we'll do it for the branding. But given that our business is based on turnover,
we prioritise on the wallet size," he said.
Analysts have said one of the factors in recent weakness in shares of
Deutsche Boerse AG and London Stock Exchange Group has been fears of trading
volume transferring to alternative platforms like Chi-X and Turquoise.
Andrew Newby; Andrew.Newby@thomsonreuters.com
an/slj
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