Migration path to virt-x launch
As indicated on 23 October 2000, the implementation of virt-x will be phased to facilitate a smooth and efficient migration to the new market. On 20 November 2000 the virt-x test environment was made available to potential members for the first time to allow them to commence connection tests ahead of the formal market testing. Testing of the new trading system commenced on 8 January when the beta release software was delivered to potential virt-x members.
Given the complexity of the project, further detailed planning has been carried out and as a result the development timetable and resource requirements have been evaluated. Under this timetable, the market validation phase, incorporating trading and fully flexible multi CSD settlement, is expected to begin in April ahead of the anticipated launch on 25 June. Detailed consultation with market participants has now commenced.
The final phase of the implementation process, which is targeted to be completed by Q4 2001, will include the first multi CSD central counterparty for all European blue chips. In the meantime there will be a fully flexible multi CSD settlement solution available which will provide the core settlement infrastructure that the central counterparty will utilise in due course.
The advantages of virt-x will be
- Direct trading in the constituents of all major European indices on one exchange, with one rule book and within a single regulatory environment, supervised by the FSA
- An electronic anonymous order book
- Exclusive use of the SWX Trading Platform for pan-European equities
- A fully integrated trading, clearing and settlement model with a central counterparty for cross border trading provided by the London Clearing House
- Significant scope for cost savings; and
- Multi-currency capability
