Månad: maj 2011

Burgundy’s volume has kept up with the level from March but Burgundy’s market share in Swedish listed instruments decreased from 4.6 to 2.6 – why?
Olof: Burgundy set a new turnover record in March and reached above EUR 110 million and we are happy to see that this level stayed in April. At the same time the total value of the market increased by almost 50 percent in April. These volumes have gone mainly to Markit Boat and to LSE in systematic internalizing and OTC. 

How much of the trading went to new venues?
Olof: It was a new all-time-high of 52 percent for trading in Swedish equities outside the traditional venues – please see more in April’s statistic report regarding the market places’ market shares.

Many Burgundy watchers are asking about the activity on these reporting venues?
Olof: Although data on this is sketchy, we believe this is a seasonal activity in connection with the AGM and reporting season in April and May.  

What do you think that the increased volumes outside the exchange might lead to?
Olof: That is a big question but just in brief and in near term I guess that more people will react on this change and that we should soon be able to see consolidated figures in media and at news sites etc. Today the professional players are able to see this trading but private investors are not. The turnover figures in media represents only half of the turnover – one could ask if that is considered to be news?

What does it mean to Burgundy?
Olof: Now when MTF’s are increasing their trading volumes in general and we have around 10 percent in some of the largest instruments more securities firms are getting interested to trade here and you are also getting more attention from media etc. We will keep on working to spread our message to an even broader crowd and to get more firms to connect to Burgundy.

In April, Burgundy reached close to 10% of the primary market turnover in Swedish equities – as competition proliferates in the Nordic region, more and more banks and clients are discovering how easy it is to trade on alternative marketplaces such as Burgundy.

As for the Nordic market, April was also a new record month for the industry as a whole, where over 60% of the total volume in Nordic equities was traded outside the primary exchanges. Some critics say that this is bad for the market and that this distorts overall liquidity. Well, nothing could be more wrong, and if you compare the exchange industry with other service industries such as airlines and telecom operators – I believe that few customers would stand up and say that competition is bad. Because that is why we exist, fragmentation is not a disease – it’s all about competition in a protected industry under immediate pressure to shape up and provide more efficient services to our clients. When the cost of trading falls, friction is reduced and liquidity begets liquidity. If you are a customers looking only at the primary exchanges, maybe it’s time you took a closer look and ask your broker if he is connected to the total market or just a shrinking bit.