NYSE Euronext launches retail matching facility
Retail Investors To Benefit From Improved Execution Prices On European Equity Trades On A Fully Transparent Facility
Amsterdam, Brussels, Lisbon and Paris – NYSE Euronext (NYX) today announced the launch of a Retail Matching Facility (RMF) on its European regulated cash markets¹, a new service which enables Retail Liquidity Providers to offer price improvements to retail investors. This initiative, which meets all pre- and post-trade MiFID requirements, will be available as of mid- January 2013.
NYSE Euronext member banks and brokers² can execute their retail order flow via the Retail Matching Facility (RMF) against new price improving liquidity provided by Retail Liquidity Providers. Furthermore, they will not be required to invest in new connections as they will be able to use their existing access to the European regulated cash markets. The liquidity providers will be required to be present at the European Best Bid and Offer spread 95% of the trading day.
Alicia Suminski, Head of Market and Product Development, European Equity Cash and Derivatives, NYSE Euronext said “The aim of NYSE Euronext’s Retail Matching Facility is to promote a more competitive, transparent environment for retail investors than they currently achieve through bilateral, internal arrangements with intermediaries.”
Retail investors’ orders will be eligible to trade with both Retail Liquidity Providers, whose role will be to provide buy and sell quotes in the RMF, and NYSE Euronext’s central order book. The Retail Liquidity Providers will trade with the retail orders exclusively according to the ordinary price-time priority principle, in full competition with other Retail Liquidity Providers and the central order book itself. If the Retail Liquidity Providers’ quotes are not competitively placed then the retail investors’ orders will automatically trade with NYSE Euronext’s central order book thus preserving its order flow diversity. All RMF transactions are regulated market transactions and will be identified appropriately. Additionally, in order to be pre-trade transparent, Retail Liquidity Provider quotes will be broadcast.
The Retail Liquidity Programme is open to all eligible NYSE Euronext members, ensuring absolute neutrality, and is highly competitive thanks to a selection process.
Notes to Editors
1 Initially the component securities of the AEX®, BEL20®, CAC 40® and PSI20® indices will be eligible for the Retail Matching Facility, subject to member demand this may be extended to other equities admitted to trading on the NYSE Euronext European Cash Markets.
2 NYSE Euronext member banks and brokers that are registered as a Retail Member Organisation
About NYSE Euronext
NYSE Euronext (NYX) is a leading global operator of financial markets and provider of innovative trading technologies. The company’s exchanges in Europe and the United States trade equities, futures, options, fixed-income and exchange-traded products. With approximately 8,000 listed issues (excluding European Structured Products), NYSE Euronext’s equities markets - the New York Stock Exchange, NYSE Euronext, NYSE MKT, NYSE Alternext and NYSE Arca - represent one-third of the world’s equities trading, the most liquidity of any global exchange group. NYSE Euronext also operates NYSE Liffe, one of the leading European derivatives businesses and the world’s second-largest derivatives business by value of trading. The company offers comprehensive commercial technology, connectivity and market data products and services through NYSE Technologies. NYSE Euronext is in the S&P 500 index. For more information, please visit: http://www.nyx.com.
Disclaimer and Cautionary Note Regarding Forward-Looking Statements
This press release may contain forward-looking statements, including forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include, but are not limited to, statements concerning NYSE Euronext’s plans, objectives, expectations and intentions and other statements that are not historical or current facts. Forward-looking statements are based on NYSE Euronext’s current expectations and involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such forward-looking statements. Factors that could cause NYSE Euronext’s results to differ materially from current expectations include, but are not limited to: NYSE Euronext’s ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk and U.S. and global competition, and other factors detailed in NYSE Euronext’s 2011 Annual Report on Form 10-K and other periodic reports filed with the U.S. Securities and Exchange Commission or the French Autorité des Marchés Financiers. In addition, these statements are based on a number of assumptions that are subject to change. Accordingly, actual results may be materially higher or lower than those projected. The inclusion of such projections herein should not be regarded as a representation by NYSE Euronext that the projections will prove to be correct. This press release speaks only as of this date. NYSE Euronext disclaims any duty to update the information herein.
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