BarCap to launch European dark pool trading platform

15 June 2010

Barclays Capital (BarCap) has unveiled plans to launch a dark pool trading platform within Europe.

According to the investment unit, the new exchange will be implemented during the third quarter of 2010.

It will be rolled out in addition to the US equities trading business BarCap acquired when it took over failed bank Lehman Brothers in 2008.

Dark pools enable investors in large amounts of shares to hide information from the marketplace and other investors before a trade is made.

The platform, which will be called LX, will allow users tiered access to securities while also letting them choose which counterparties they interact with.

BarCap is thought to be implementing the new platform as part of a strategy to compete with rival financial institutions such as Morgan
Stanley and Credit Suisse, which already offer access to an in-house trading platform within the eurozone territory.

Meanwhile, the financial institution has also launched a new convertibles benchmark index for Europe, Middle East and Africa.

The bank stated that the new index should appeal to “dedicated convertibles investors” as well as “crossover debt and equity investors”.

By Jim Ottewill

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