April 2005 saw a turnover of Â£51.6 bn on virt-x in Swiss Market Index (SMI) stocks, the highest since its launch in London four years ago. virt-x has also diversified its business model in response to the changing needs of its members, and has implemented a trade reporting service focused on off-orderbook trading in UK securities. A number of major investment firms use the service to report between 11% and 12% of trades executed by Retail Service Providers and the platform received its 1 millionth UK trade report this month.
Since the introduction of virt-xâs trade reporting service, LSE members have experienced two price reductions totalling 35% for low volume users and up to 60% for the largest firms, whilst those switching to virt-x have reduced their reporting charges on average by over 80%. This supports virt-xâs philosophy of encouraging competition in the London trading arena.
The service recognises the structure of the UK trading environment and the desire of the broker community to trade with competing market makers on a bilateral basis. As a result virt-x has extended its list of securities admitted to trading to include all fully listed UK securities, and introduced two new membership categories to enable brokers focused on the UK domestic market to report their trades to virt-x in a cost effective manner.
"virt-x has experienced a successful and interesting four years in the London market and, having grown our market share in trading SMI stocks in London, we have successfully adapted our business model to include trade reporting facilities, with increased competition in the market forcing price reductions from our competitors" Peter Keller, CEO of virt-x commented. "As exchange consolidation takes effect throughout Europe we firmly believe that competition in the market is essential. As an integral part of the competitive exchange landscape in London we are pleased to offer an alternative solution with multiple clearing and settlement choices."
â¢ virt-x provides a single open architecture platform for efficient, low cost trading and straight through processing. It is the only exchange to offer choice of both clearing (LCH. Clearnet & SIS x-clear) and settlement providers (Crest, Euroclear Bank and SegaInterSettle)
â¢ virt-xâs connectivity gives direct, real-time access to on- and off-order book trading in Swiss blue chips, leading European blue chips, ETFs and UK trade reporting services