Baikal Picks Fidessa to Develop Smart Order Router

Baikal, the London Stock Exchange’s Pan-European multilateral trading facility (MTF), announced a partnership withFidessa to develop its order management and smart order routing technology.

The LSE is making progress towards a “phased-in roll-out of Baikal later this year, according to a statement by John Wilson, CEO of Baikal.

“With this service we are able to offer a MiFID (Markets in Financial Instruments Directive) compliant best execution service that shields customers from the complexity and costs of direct membership of multiple markets and central counterparties,” stated Wilson in the release.

Baikal’s first service will be smart order routing capabilities to provide “one-stop shop” for navigating fragmented liquidity across Europe, according to the release. In addition, Baikal will develop a non-display order book, to be launched later this year, based on the LSE Group’s TradElect platform.

Baikal will offer a neutral pan-European liquidity venue that will consists of: a non-display European equities order book as well as order route to a broad range of displayed and non-displayed European equities liquidity, through a single connection and net settlement, according to the release.

By launching the smart order routing first, Baikal and its participants will use the time to establish a network of linkages that will make liquidity aggregation possible. These technical and commercial linkages will allow the Baikal order book to maximize trading opportunities at launch, according to Baikal.

In selecting its other key technology partners, Baikal also picked QuantFEED, an end-to-end low latency price-referencing venue, provided by QuantHouse to source market data. Baikal will also the SMARTS surveillance systems to monitor real-time activity on the non-display order book, developing the platform used for surveillance of LSE markets.

In addition, BNP Paribas Securities Services was selected as the settlement agent for the pan-European aggregation service, which will provide customers with integrated settlement regardless of which venue executes the trade. Once the Baikal order book is launched, CC&G, the LSE Group’s clearing house will provide a pan-European clearing service.

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio