Chi-X Europe, the pan-European multilateral trading facility (MTF), was ranked as the second largest equity exchange by value traded in 2010, according to industry body the Federation of European Securities Exchanges (FESE), behind the London Stock Exchange Group (LSEG) and just ahead of exchange operator NYSE Euronext.
The MTF is currently in exclusive talks with alternative trading venue operator BATS Trading, following a bid made on 28 August 2010.
According to data from FESE, LSEG turnover, which includes the domestic UK and Italian markets, was €2.883 trillion in 2010, whereas Chi-X Europe traded €1.535 trillion and NYSE Euronext €1.532 trillion. Deutsche Börse traded €1.236 trillion by comparison.
Chi-X Europe's own data put its turnover at €1.58 trillion in 2010 – greater than the total value traded on Chi-X Europe across the previous three years. Value traded during Q4 2010 remained virtually unchanged at €367.8bn, with a 1% decrease from the previous quarter, but increased by 33% compared to the fourth quarter of 2009.
Market share increased across the major indices versus the previous year, taking Chi-X Europe's share above 25% in the FTSE 100 and over 20% in the AEX 25, BEL 20, CAC 40 and DAX 30.
According to the MTF's own figures Overall savings for participants through price improvements during the year amounted to more than €170 million, representing an average price improvement of 1.41 basis points.
Key developments during the year included further expansion of the stock universe to cover Irish equities, Belgian mid-cap equities and international depositary receipts.
Chi-X Europe also recently announced the launch of the centrally cleared contract-for-difference (ccCFD) service in partnership with LCH.Clearnet, allowing CFDs, a product usually traded over the counter, to be brought on-exchange, reducing counterparty risk and increasing netting efficiencies.
Plans to launch a derivatives offering have been delayed by the takeover offering fom BATS Trading and are now expected to be announced in Q1. Belinda Keheyan, head of international marketing, Chi-X Europe said, “It took us three years to get to this stage on equities and to enter derivatives is a huge thing, it is not a small undertaking. It is close to starting from scratch.”
Non-displayed liquidity represented around 4.6% of all trading activity transacted on Chi-X Europe in Q4 and 3.7% for the year as a whole. Participants trading on Chi-Delta, the MTF's mid-point dark pool, achieved average basis point savings of 4.47bps on each side of the trade.