New trading platform provides a more efficient and transparent way to trade ETFs, referencing NAV..…
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Navesis-ETF, the new fully electronic trading platform designed to enhance the way exchange traded funds (ETFs) are traded, launches today. The platform is a joint venture between Tradition, the global interdealer broker, and Nomura, the global investment bank and leading market maker in ETFs.
In the rapidly evolving ETF environment, Navesis-ETF has been designed to increase transparency and efficiency, boost market liquidity, reduce costs and be fully regulatory-compliant. The platform will allow market participants, including institutional traders, sell-side banks and market makers, to engage in intra-day and auction trading; referencing net asset value (NAV) prices in the ETF primary market, with cross asset class coverage, for the first time.
Navesis-ETF creates a common market place that will transform the current creation and redemption process, allowing market participants to fulfil NAV-based ETF orders in real-time, transparently, and at competitive prices.
The platform is the first of its kind and benefits from Tradition’s existing innovative proprietary technology, enhanced with Nomura’s expertise as a leading participant in the ETF primary market and status as the first investment bank to establish an MTF dark pool. Navesis-ETF is an open-architecture platform available to all qualifying market participants, and is live now.
Rupert Hodges, Managing Director – TFS Derivatives Ltd, London, at Tradition commented: “Navesis-ETF represents an important step-change in the future of ETF trading. It has been developed in conjunction with Nomura to specifically tackle market inefficiencies and we believe it will help to grow liquidity, increase transparency, and be seen as a positive industry initiative ahead of regulatory reform on both sides of the Atlantic. This initiative is completely in line with the Tradition’s global strategy of developing platforms and solutions with our core client base, designed to enhance liquidity, transparency and efficiency. Navesis-ETF demonstrates great technical innovation in a climate of regulatory change.”
Lee Burrows, Head of Delta One, EMEA at Nomura added: “The ETF industry has enjoyed a rapid ascent over the past 10 years, but structural inefficiencies have meant that the market has not reached its true potential. As leaders in liquidity management, and as a large player in the ETF market, we know from first-hand experience that Navesis-ETF fulfils the desires of participants and regulators. This is the first of its kind to market and will be a leading provider in the space. We expect this to become the primary market place for ETF trading.”
KEY PLATFORM BENEFITS:
– Competitive pricing: enables market participants to view and execute against streaming prices on screen, referenced to the NAV and to cross during the auction phase
– Efficient trading: an electronic and more efficient alternative to the current creation and redemption process – for tighter pricing, better transparency and greater liquidity
– Broad access: increases trading opportunities via a central venue
– Real-time execution: ability to view streaming prices with full “click & trade” functionality at the best bid and offer, along with a daily auction process
– Regulatory future-proofing: compliant with MiFID, and rules on best execution and transparency, thanks to an online order book and streaming prices and post trade record retention.
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