The London Stock Exchange has announced its key technology
partners as it gears up to roll out a "dark pool" trading system
across Europe.
The Baikal trading system is strategically important to the
London Stock Exchange, as it fights growing competition from
established exchanges, including Deutsche Borse and new trading
platforms including BATS, Turqouise and Chi-X.
"Dark pool" exchanges, such as Baikal, are becoming increasingly
popular among institutional shareholders. They allow traders to
execute shares without displaying the pre-trade prices to rivals,
unlike traditional "lit" markets.
Fidessa, an independent provider of global trading systems, will
develop order management and smart order routing technology for
Baikal, the London Stock Exchange announced. Other partners include
QuantHouse and BNP Paribas Securities.
"The combination of these technology and service providers
together with the London Stock Exchange Group's in-house
capabilities and order book technology will establish Baikal at the
leading edge of exchange technology," said John Wilson, CEO of
Baikal.
Baikal plans to launch a smart ordering capability across Europe
first. The Baikal non-display order book will be launched later in
the year, using the LSE's TradElect platform.
Baikal will use the Smarts surveillance system, already used to
monitor the London Stock Exchange markets, to monitor real-time
activity on Baikal.
The exchange will use the QuantFeed platform, provided by
QuantHouse, for sourcing market data.
BNP Paribas Securities will provide back-end clearing services
through the London Stock Exchange's Italian clearing house and
alternative venues.