SMARTPOOL TO ADD EUROPEAN MID-CAP SECURITIES
PARIS — SmartPool, the neutral dark liquidity pool created by NYSE
Euronext in partnership with HSBC, JPMorgan and BNP Paribas, plans to
add trading of pan-European mid-cap securities, starting in September,
with all constituents of the FTSE 250 (UK), FTSE Italia Mid Cap (Italy),
MDAX (Germany) and SMIM (Switzerland) indexes, and mid-cap constituents
of the Dow Jones STOXX 600.
“The SmartPool value proposition is especially relevant for transactions
in securities where liquidity is scarce and implicit execution costs
tend to be higher,” says Lee Hodgkinson, CEO of SmartPool. “Our
expansion into offering mid-caps across Europe will be of great value to
customers who wish to trade less liquid securities in a non-displayed
environment.”
Trades in these securities will be cleared via LCH.Clearnet for Euronext
listed stocks and EuroCCP for all other European markets.
“We are delighted to support SmartPool’s expansion by providing our
expertise in clearing services for a wider product range to market
participants, and to provide our members with the benefits of offsetting
risk and settlement levels between SmartPool and NYSE Euronext markets,”
says Christophe Hémon, Chief Executive, LCH.Clearnet SA.
“The use of EuroCCP clearing services further extends benefits of
netting across Europe for SmartPool members, whilst providing strong
risk mitigation in these less-liquid securities,” says Diana Chan, CEO
of EuroCCP.
The existing blue chip range of securities will also be extended to reflect the leading indices of the 15 European equity markets traded on SmartPool, including securities listed on the four NYSE Euronext markets.