Euro Millennium: exporting US expertise

COPYING AND DISTRIBUTING ARE PROHIBITED WITHOUT PERMISSION OF THE PUBLISHER: SContreras@Euromoney.com

By:
Peter Koh
Published on:
The year of the MTF?
Equiduct: evolutionary leapfrog
Turquoise: the banks slowly muscle in

Euro Millennium is a European offshoot of the Millennium darkpool that has been operated in the US by Nyfix, a technology company, since 2002.
Trades are cleared by Nyfix, which has broker-dealer status, and settled locally on a pan-European basis by BNP Paribas.

It offers anonymous crossing of orders either at the mid-point of the bid-offer spread, at a specified price or within a range, to allow for higher fill rates.

Unlike some other crossing networks, the Millennium systems are truly neutral. “A very important difference is the neutrality of our service,” says Chris Smith, head of Euro Millennium. “Some systems are either developed by or for a particular segment of the market like brokers or investment managers, but Euro Millennium is totally neutral. This means that we are open to liquidity wherever we can find it and that we are prepared to onward route any orders that don’t get filled to wherever our clients choose.

It also means that we enable clients to interact with us however they like, so there are no minimum order sizes and we allow algorithms.”

Nyfix also announced this December that it had teamed up with the Virt-X exchange to create a non-displayed service for Swiss blue chips that will be tightly integrated with the Virt-X platform. “By working with the main liquidity centre for Swiss blue chips, we believe we can create a great place to get crossing done in those stocks,” says Smith. “Clients can look for a block in our dark pool and then have any unfilled shares passed directly to Virt-X which has 90% of the market for Swiss blue chips.”