BATS Chi-X Europe
|BATS Chi-X Europe|
|Products||Multilateral Trading Facility|
BATS Chi-X Europe was formed when the two leading pan-European multilateral trading facilities, BATS Trading Europe and Chi-X Europe, combined in November of 2011. Chi-X Europe was acquired by BATS Global Markets, of which BATS Trading Europe was a subsidiary. BATS Chi-X Europe was promoted to exchange status by the Financial Conduct Authority in May of 2013.
BATS Chi-X Europe is an order-driven pan-European securities exchange that allows participants to trade securities listed in major European markets. The exchange's pan-European offering covers all the components of the Euro Stoxx 50, the eurozone's blue chip index.
Connectivity and Services
Connectivity to BATS Chi-X Europe is available through a number of routes, such as network service provider, leased lines or co-location. Chi-X Europe uses the FIX protocol to enable order entry, amendments, cancellations and receipt of executions by trading participants. Market data is available either as a direct feed or via third-party vendors in a standardized format.
Main services include:
- Displayed order book
- Chi-Delta - non-displayed order book
- Chi-Vision - smart liquidity consolidation service
- Sponsored Access
Clearing and Settlement
Clearing of trades on BATS Chi-X Europe takes place through the European Multilateral Clearing Facility (EMCF), which offers a wholesale cash market central counterparty (CCP) solution. EMCF has been the CCP for Chi-X Europe since launch.
The FCA approved BATS Chi-X Europe’s application for Recognised Investment Exchange (RIE) status effective May 20, 2013. As a RIE, BATS Chi-X Europe will be authorized to operate a Regulated Market for primary listings alongside its existing business. Becoming a full-fledged exchange will also allow for broader access to retail investors.
In April 2013, BATS Chi-X Europe recorded market share of 22.4 percent, with an average daily notional value of €7.8 billion. Also in March 2013, the firm set a new monthly market share record in Depository Receipt (DR) trading, with BATS Chi-X Europe earning 7.1 percent market share, exceeding its previous record of 5.9 percent set in March 2013.
Chi-X Europe was created as a response to the EU’s Markets in Financial Instruments Directive (MiFID), which aimed to increase competition and drive down the cost of trading in Europe. Live trading in European equities began at Chi-X Europe on March 30, 2007. By January of 2010, around 1,200 equities and ETFs/ETCs were available for trading on Chi-X Europe. These stocks were listed in the following markets: United Kingdom; Germany; France; The Netherlands; Belgium; Switzerland; Sweden; Finland; Norway; Denmark; Austria; Italy; Portugal; Spain; Ireland. The majority of stocks in the leading indices in these markets are available for trading on Chi-X Europe. Additionally, stocks from a number of Mid cap indices are also available.
Chi-X Europe was the first Multilateral Trading Facility (MTF) to challenge traditional bourses including Deutsche Boerse AG, London Stock Exchange Group Plc and NYSE Euronext by offering lower fees and faster trading. It was owned by a consortium of global financial institutions following Instinet's strategy of rewarding the largest users of the platform with the opportunity to purchase equity stakes. The consortium included BNP Paribas, Citadel, Citigroup, Credit Suisse, Fortis, GETCO Europe Ltd, Goldman Sachs, Instinet, Merrill Lynch, Morgan Stanley, Optiver, Société Générale, and UBS. While Chi-X Europe was developed and launched by Nomura subsidiary Instinet, it is not a part of Instinet's Chi-X Global subsidiary, which was created a year later.
- John Woodman, Chairman
- Mark Hemsley, Chief Executive Officer
- David Howson, Chief Operating Officer
- Michael Beaver, Chief Financial Officer
- Guy Simpkin, Head of Business Development
- Adam Eades, Chief Legal and Regulatory Officer
- Chi-X Europe Says Volumes Almost Doubled in Second Quarter (Bloomberg, 12 July 2010)
- My corporate jet is easyjet: meet the platform boss taking on the LSE (City AM, 18 May 2010)
- Het is nog steeds David tegen Goliath (De Tijd, 26 May 2010)
- MTFs’ index campaign gains widespread support (The Trade, 1 April 2010)
- The winds of change at Chi-X Europe (Finextra, 30 March 2010)
- Uppstickaren pressar Stockholmsbörsen (Svenska Dagbladet, 18 March 2010)
- Competitors’ rates must fall further – Chi-X’s Haynes (The Trade, 15 February 2010)
- Chi-X Europe CEO plans to keep low-fee strategy] (Reuters, 15 February 2010)
- Chi-X overtakes NYSE Euronext as second busiest European equities market (Financial News, 20 Jan 2010)
- ↑ Hemsley sees BATS take flight. Financial News.
- ↑ Regulation. BATS Trading U.K..
- ↑ BATS’ European Arm Wins Exchange Status. Wall Street Journal MoneyBeat.
- ↑ BATS Global Markets U.S. Equities Market Share Rose In April; Europe Depository Receipts Trading Reached Monthly Record. PR Newswire.
- ↑ BATS Exchange Completes Rollout of All Securities. BATS Europe.
- ↑ BATS Europe Gives Fortis Latest Clearing Deal. SecuritiesIndustry.com.
- ↑ BATS Europe announces smart order router. Automated Trader.
- ↑ Chi-X Europe’s Misra Quits for ‘Other Interests’. BusinessWeek.
- ↑ Chi-X Shareholders. Chi-X.
- ↑ LSE appoints Chi-X Europe's Denzil Jenkins head, compliance and regulation. Finextra.