NYSE Euronext (NYX), has achieved several key milestones in trading on European Cash markets, establishing the exchange as the leading marketplace for trading.
Independent figures show that its presence time at the European Best Bid and Offer (EBBO), thereby ensuring market participants have access to the best available prices at a given time, increased from 65% to 85% between January 2010 and April 2011 on its key blue chip indices stocks, further strengthening its position as the no1 trading venue in terms of Market Quality.
Market quality is a key differentiating factor for investors and brokers when selecting a trading venue. Given the variety of choices for places to trade, there is an implicit search cost. The higher the quality of a market the lower the explicit costs will be for the investor, assuring therefore a better quality of execution.
Indicators of market quality include amongst others presence time at EBBO, quoted market depth (reflecting the market’s ability to sustain relatively large market orders without impacting the price of the security) and quoted spreads (difference between bid and ask prices). For its key European blue chip indices stocks (CAC 40, AEX, BEL 20 and PSI 20) NYSE Euronext accounts for: presence time at EBBO (European Best Bid and Offer) of 84.60% (next best 64.34%); displayed market depth of EUR44798 at best limit (next best EUR28179); and spread of 7.66 bps (next best 9.43 bps).
The NYSE Euronext electronic central order book processes the most trades in Europe. It is a liquid, regulated and neutral market, for institutional and retail investors. NYSE Euronext creates the reference price for its listed stocks and has the largest customer base in Europe.
“We recognize that the diversity of clients in our order book contributes to the robust price discovery process and we are appreciative of the quality of markets generated as a result. This ultimately improves transparency for issuers and investors joined in capital formation process,” says Lisa Dallmer (pictured), COO European Cash Markets.
With a total of more than 144 million of transactions in the first 4 months of the year on NYSE Euronext’s European Cash Markets activity increased by 22.4% compared to prior year levels.
Customers benefit from the operational and capital efficiencies achieved through the enterprise wide UTP trading technology platform that offers access to NYSE Euronext’s highly liquid regulated markets, SmartPool, NYSE Euronext’s dark pool facility and NYSE Arca Europe, an MTF which offers trading in other pan-European stocks.
