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Chi-X Europe and Liquidnet Supernatural to Interconnect

The collaboration between Chi-X Europe and Liquidnet Supernatural is expected to enhance liquidity discovery opportunities for clients of both firms by bringing together liquidity sources whilst allowing anonymous trading with minimal market impact.

Chi-X Europe, operator of the largest pan-European equity multilateral trading facility (MTF) and Liquidnet, a block trading MTF in Europe, today announced that they have signed an agreement to interconnect. As a result, Chi-Vision, Chi-X Europe’s smart liquidity consolidation service, will provide clients the ability to execute against Liquidnet Europe’s Supernatural liquidity, while Liquidnet Europe will become a direct trading participant of Chi-X Europe, allowing Liquidnet members—through Supernatural—to execute against the liquidity on Chi-X Europe’s visible order book and the Chi-Delta non-displayed order book. Pilot testing of Liquidnet Supernatural is due to commence in October 2009.

Chi-Vision (“Venue Interfaced Smart Interactive Order Network”), which launched in early August 2009, provides access to the Chi-X Europe visible order book, Chi-Delta and a range of external liquidity providers, and today’s announcement represents a continuation of Chi-X Europe’s strategy of adding further sources of liquidity to the platform. The addition of Liquidnet Supernatural to Chi-Vision allows trading participants of both firms the option to efficiently interact with liquidity from both of Chi-X Europe’s order books as well as Liquidnet Supernatural, providing substantial price discovery potential along with the opportunity to execute large blocks.

“We are delighted to further extend our Chi-Vision liquidity consolidation service by connecting to Liquidnet Europe, and at the same time welcome Liquidnet Europe as a Chi-X Europe trading participant,” said Hirander Misra, COO of Chi-X Europe, in a company release. “Today’s agreement brings together two complementary business models, since Chi-X Europe provides rapid price discovery as Europe’s most liquid MTF and Liquidnet Europe brings a reputation as the leading market for block-size liquidity discovery. We see this as offering trading participants of both firms enhanced crossing rates and, ultimately, improved execution quality.”

John Barker, Managing Director of Liquidnet Europe, added in the release, “With Liquidnet Supernatural and our relationships with firms such as Chi-X Europe, Liquidnet will further cement its place as the venue for trading block orders. We are excited about today’s agreement with Chi-X Europe, as we look forward to Supernatural being a growing source of liquidity for our buy-side members.”

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