Nomura has launched NX MTF, a principal broker dealer established multilateral trading facility (MTF) dark pool. NX will operate as a dark pool MTF trading pan European equities and will be regulated by the UK Financial Services Authority. The platform is expected to go live in January 2010.
The creation of NX MTF offers a new approach, providing access opportunities to clients, transparency around post trade reporting and operational rules and procedures. NX will be a dark MTF seeded with existing liquidity from Nomura’s equities franchise as opposed to funding from external sources.
NX is designed as a platform that will draw blocks of inactive liquidity into the market, increasing the overall set of liquidity available to the investor community.
Emad Morrar, head of liquid markets at EMEA at Nomura, said: “The launch of NX MTF furthers our ambition of providing clients with the greatest transparency and liquidity in the market.”
Andrew Bowley, head of electronic trading product management of EMEA at Nomura, said: “NX is truly innovative as a safe place to trade. It has unique anti gaming logic in the matching engine and will be the first dark pool MTF operating with ‘well formed market’ checks. NX also anticipates being the first MTF with AIM Secondary Market Registered Organisation (ASMRO) status, allowing the execution and inclusion in NX reporting of UK AIM stocks.
“The launch of NX MTF is the culmination of substantial development and extensive dialogue with the FSA. We have been able to define an optimal operating model for our clients that we expect the rest of the market to follow.”
Adam Toms, head of market access group at Nomura, said: “Nomura has already climbed the ranks of the London Stock Exchange (LSE), reaching and retaining the number 1 spot for five consecutive months. We believe that the launch of NX MTF will further underline the strength of Nomura’s equities franchise and will provide our clients with greater comfort in the area of dark pool trading.”
