CHI-X EUROPE, LIQUIDNET TO CONNECT FOR RECIPROCAL LIQUIDITY

Posted September 21, 2009

LONDON – European equity multilateral trading facility (MTF) Chi-X Europe and block trading MTF Liquidnet have reached an agreement to interconnect through Chi-Vision, Chi-X Europe’s smart liquidity consolidation service.

Chi-Vision users will be able to execute against Liquidnet Europe’s Supernatural liquidity while Liquidnet Europe will become a direct trading participant of Chi-X Europe, allowing its members to execute against the liquidity on Chi-X Europe’s visible order book and the Chi-Delta non-displayed order book. Chi-Vision, which launched in early August, provides access to the Chi-X Europe visible order book, Chi-Delta and a range of external liquidity providers. Chi-Vision is an acronym for Chi-Venue Interfaced Smart Interactive Order Network.

“Today’s agreement brings together two complementary business models, since Chi-X Europe provides rapid price discovery as Europe’s most liquid MTF and Liquidnet Europe brings a reputation as the leading market for block-size liquidity discovery,” says Hirander Misra, COO of Chi-X Europe. “We see this as offering trading participants of both firms enhanced crossing rates and, ultimately, improved execution quality.”

Pilot testing of Liquidnet Supernatural is due to commence in October. “With Liquidnet Supernatural and our relationships with firms such as Chi-X Europe, Liquidnet will further cement its place as the venue for trading block orders,” says John Barker, Managing Director of Liquidnet Europe.