SmartPool, the UK registered neutral dark liquidity pool created by NYSE Euronext in partnership with HSBC, JPMorgan and BNP Paribas, has expanded its trading pan-European mid cap securities. It has been reported that from September 2009, the SmartPool product universe will be expanded to include all constituents of the following five mid-capitalisation indices: FTSE 250 (UK), FTSE Italia Mid Cap (Italy), Mid cap constituents of the Dow Jones STOXX 600, MDAX (Germany) and SMIM (Switzerland).
NYSE Euronext has said that trades in these securities will be cleared via LCH. Clearnet for Euronext listed stocks and EuroCCP for all other European markets. The existing blue chip range of securities will also be extended to reflect the leading indices of the 15 European equity markets traded on SmartPool, including securities listed on the four NYSE Euronext markets.
Lee Hodgkinson, CEO of SmartPool, commented: The SmartPool value proposition is especially relevant for transactions in securities where liquidity is scarce and implicit execution costs tend to be higher. Our expansion into offering mid-caps across Europe will be of great value to customers who wish to trade less liquid securities in a non-displayed environment. With activity on the SmartPool platform in the second quarter of 2009 increasing by over 90%, today’s announcement further illustrates the depth and breadth of liquidity available on SmartPool.
Diana Chan, CEO of EuroCCP, said: EuroCCP supports the expansion of SmartPool into this market segment. The use of EuroCCP clearing services further extends benefits of netting across Europe for SmartPool members, whilst providing strong risk mitigation in these less-liquid securities.
Christophe Hémon, CEO of LCH.Clearnet, said: We are delighted to support SmartPool’s expansion by providing our expertise in clearing services for a wider product range to market participants, and to provide our members with the benefits of offsetting risk and settlement levels between SmartPool and NYSE Euronext markets.
