big xyt, provider of high-volume, smart data and analytics capabilities, has announced that Cboe Europe Equities (Cboe) is using its Liquidity Cockpit, designed to give global trading and investment firms enhanced visibility over dark and lit liquidity, and the ability to navigate and analyse European market share across a market landscape in transition.
On 3 January 2018 MiFID II regulations come into force and the major impacts on European market structure will include the imposition of caps on the amount of trading that can take place on dark venues. The market has already started to adapt to these changes as exchanges like Cboe introduce new trading services, such as Cboe LIS and its Periodic Auctions book in order for market participants to continue to trade in larger size with lower market impact. Large in Scale (LIS) trading activity has accelerated in recent months, as has the use of new auction types like periodic auctions. Against this changing trading landscape, market participants now need to recognise LIS classified trades, track market share and navigate interactions across existing and new liquidity pools – both dark and lit.
The big xyt Liquidity Cockpit provides Cboe and its participants with a normalised view of granular tick data and overview of market share across all major European venues and the ability to act on changing market dynamics. It keeps track of changes in trade conditions or execution venues, and applies custom measures such as LIS classified trades. Crucially the Liquidity Cockpit can predict the impact of dark volume caps.
Alex Dalley, Co-Head of Sales, Cboe Europe Equities said: “MiFID II will bring significant changes to European market structure and, consequently, the European liquidity landscape. By utilising big xyt’s Liquidity Cockpit, we are able to analyse the market quality of the new liquidity venues that have developed in response to MiFID II. We welcome the innovation that big xyt brings to the market and look forward to working with them.”
Robin Mess, CEO at big xyt, said: “We are delighted that Cboe has chosen Liquidity Cockpit to provide them with an independent, consolidated view of pan-European trading activity reflecting essential changes in market structure like the growth of block trading or new auction types. We continue to work closely with the trading community to deliver solutions to optimise trading and execution performance through January 2018 and beyond.”