Nomura, the investment bank, has announced that NX MTF, the first principal broker dealer established Multilateral Trading Facility dark pool, has gone live. The platform began trading in stocks across 14 European markets as scheduled on January 25, 2010.
NX MTF is the only principal broker dealer MTF dark pool to be regulated by the UK Financial Services Authority and publishes post-trade prints to Markit BOAT immediately after a trade is completed. The prints are visible on market data providers such as Thomson Reuters and Bloomberg, analytics tools such as Nomura's TradeSpex Liquidity Monitor, and market share tools such as Fidessa's Fragulator and Thomson Reuters' EMSR.
Nomura can disclose that at the close of the first week of trading, daily volume on NX MTF reached $106m on Friday January 29, giving NX a strong market entrance, with 11% of disclosed pan European dark liquidity, ranking NX 3rd in the market among European dark MTFs. The platform offers access to natural liquidity from Nomura's equity franchise as opposed to external electronic liquidity providers.
"Our trading volumes across Europe validate Nomura's decision to register its dark pool as an MTF and provide the market with additional liquidity and transparency," commented Andrew Bowley, head of electronic trading product management, EMEA, Nomura. "We are able to show the market key activity in terms of liquidity both at the individual stock level as well as across Europe. NX has launched ahead of some existing lit and dark MTFs." added Mr Bowley.
Analysis of trading patterns for individual markets on January 29 reveals that NX was the 5th largest dark MTF for UK names with 8% market share, the 3rd largest for Euronext markets (12%), and the largest dark MTF in Spanish equities (47%), as well as being the second largest MTF overall in Spain.
Following a positive response from the market, Nomura is actively working with a number of institutions to provide them with access to NX MTF. Nomura is pleased to welcome Credit Suisse AES as the first new connection. Other institutions include, Instinet Europe Limited, Investment Technology Group and Turquoise TQ Lens. Nomura expects to announce additional connections over the coming weeks and will report all updates to www.nomura.com/nx.