Today SmartPool, the new Multi-lateral Trading Facility (MTF), set up by NYSE Euronext, BNP Paribas and HSBC, providing a dark pool for block trading in European stocks, announced that J.P. Morgan, a leading global investment bank and financial services firm, will join the venture as a fourth partner.
Lee Cook, Head of Cash Equities EMEA at J.P. Morgan said, “In partnering SmartPool, J.P. Morgan recognizes the growth and importance of block trading in providing enhanced execution quality for our clients. Current market trends towards smaller execution sizes on central order books, and increasing market fragmentation re-enforces the need for these venues as Europe’s market structure continues to evolve.”
Roland Bellegarde, Group Executive Vice President and Head of European Execution at NYSE Euronext said: “We are delighted that J.P. Morgan is joining as a partner in SmartPool, the first European exchange-led “dark liquidity pool” in an advanced state of readiness. “In the intensely competitive European landscape, NYSE Euronext is committed to offering its customers a comprehensive and complete offering.”
SmartPool is currently in testing with its clients as well as both clearing partners LCH.Clearnet and EuroCCP. By the end of this month the trading platform will have been fully tested and SmartPool will start its soft launch in November in order to offer trading in all 14 European markets to a large client base before the end of the year *.
With the trend for trading in smaller sizes on central order books in Europe, SmartPool will offer institutional order flow a competitively-priced alternative trading venue for trading block orders of European stocks, ensuring minimal market impact on a low latency trading platform.
There are many advantages to SmartPool, one of which is that it will be linked and will interact with NYSE Euronext’s “light pool”, profiting from the efficient price formation and liquidity of its existing central order book. And, in the future, it will also route to other pools of liquidity.
SmartPool will leverage off the advanced technology developed by NYSE Euronext and the existing connectivity that links Euronext with its main European sell-side users making connectivity very simple. This will enable sell-side firms to connect to SmartPool as from the launch date.
* Subject to FSA approval
