Chi-X Europe and Liquidnet have signed an agreement to interconnect. As a result, Chi-Vision, Chi-X Europe’s smart liquidity consolidation service, will provide clients the ability to execute against Liquidnet Europe’s Supernatural liquidity, while Liquidnet Europe will become a direct trading participant of Chi-X Europe. Reportedly, it allows Liquidnet members to execute against the liquidity on Chi-X Europe’s visible order book and the Chi-Delta non-displayed order book.
Chi-X Europe has claimed that Chi-Vision provides access to the Chi-X Europe visible order book, Chi-Delta and a range of external liquidity providers. The addition of Liquidnet Supernatural to Chi-Vision is expected to allow trading participants of both firms the option to efficiently interact with liquidity from both of Chi-X Europe’s order books as well as Liquidnet Supernatural, providing substantial price discovery potential along with the opportunity to execute large blocks.
Hirander Misra, COO of Chi-X Europe, said: “We are delighted to further extend our Chi-Vision liquidity consolidation service by connecting to Liquidnet Europe, and at the same time welcome Liquidnet Europe as a Chi-X Europe trading participant. Today’s agreement brings together two complementary business models, since Chi-X Europe provides rapid price discovery as Europe’s most liquid MTF and Liquidnet Europe brings a reputation as the leading market for block-size liquidity discovery. We see this as offering trading participants of both firms enhanced crossing rates and, ultimately, improved execution quality.”
The pilot testing of Liquidnet Supernatural is due to commence in October 2009.
