The European equity markets are undergoing dramatic change driven by two major catalysts. First, significant regulatory changes, such as the implementation of MiFID*, have removed barriers to cross-border and off-exchange trading in Europe. Second, European markets are witnessing growth in the use of electronic and algorithmic trading, leading to significantly increased trade volumes. Into this dynamic marketplace, NYFIX has launched Euro Millennium, aimed at supporting the needs of both sell-side and buy-side clients in Europe seeking to adapt to and to take advantage of this changing market environment.
Euro Millennium is the first truly open European dark pool. Euro Millennium currently matches UK-listed equities, and will be rolling out other major European markets over the course of 2008. Euro Millennium is built upon the proven technology that powers NYFIX MillenniumÂ®, a leading independent US dark pool in operation for the past seven years.
Euro Millennium allows participation from both buy-side and sell-side firms seeking price improvement and minimal market impact. The service was developed with the direct participation of an Advisory Board which worked with NYFIX for nearly a year. Members of the Advisory Board include Allianz Global Investors KAG mbH, Baring Asset Management, BNP Paribas Securities Services, Citi, CA Cheuvreux, Credit Suisse, DWS Investments, Insight Investment, JPMorgan Asset Management, JPMorgan, Merrill Lynch, Resolution Asset Management, Schroder Investment Management and UBS.
Commenting on the launch, Howard Edelstein, CEO, NYFIX said: âThis is an exciting day for NYFIX and marks a significant milestone in our determined drive to remain at the forefront of global trading technology. With seven years of experience operating a dark pool in the US, we have witnessed how technological innovation has enabled clients to keep pace with the requirements of a constantly changing market place. Euro Millennium was designed to provide our European client base with a service that offers an ability to deploy new trading strategies across Europe by tapping into a new pool of liquidity.â
Credit Suisse was the first client to successfully match a live trade on this new dark liquidity venue using its industry-leading Advanced Execution Services (AES) algorithms on the first day of operation. âWe are delighted to be the first participant in this new dark venue and we support Euro Millenniumâs aim to widen the competitive landscape among exchanges and alternative trading venues in Europe. As a member of the Euro Millennium Advisory Board, we are confident that the service supports our drive to achieve best execution for our clients and we believe a collaborative approach to harnessing dark liquidity in Europe is the best way to satisfy our clientsâ execution performance objectives," said Naseer Al-Khudairi, Co-head of Cash Trading at Credit Suisse.
Richard Evans, Global Head of Citi Electronic Execution added âWe are delighted to support NYFIX and further increase the liquidity options open to our clients through their new platform. Citi is committed to providing leading edge solutions to allow our clients to access the maximum available liquidity pools via our algorithmic trading and market leading smart order routing products across the globe.â
Adding to this, Chris Smith, Director, NYFIX International, said: âEuro Millennium was born out of a committed year-long partnership with buy-side and sell-side participants who have provided valuable advice and feedback through our Advisory Board. As the only truly open European dark pool, we are very proud that Euro Millennium reflects the rapidly evolving needs of our clients in todayâs environment of dramatic regulatory change and increased competition.â