Nasdaq OMX has chosen the European Multilateral Clearing Facility, run by Fortis, to be the clearer for the pan-European MTF that it plans to launch in September. Nasdaq OMX’s choice is a boost for EMCF, which also handles the clearing of rival pan-European MTF, Chi-X.
The competitiveness of clearing and settlement arrangements is crucial to the success of MTFs, which want to offer trading in stocks traded in many markets.
Turquoise, an eagerly anticipated MTF initiated by a number of leading investment banks, plans to use a system being launched by a division of the US Depository Trust and Clearing Corporation and Citi.
Nasdaq plans to offer trading in 300 blue-chip stocks across 14 markets.