Competitive offer in NGM shares at Burgundy!

I can see that you are trading in NGM-shares now – for how long have you done that?
We started to offer trading in NGM shares in February, which we informed the market of at that time. This is another step in our Nordic strategy to offer trading in Nordic listed shares. It is great to see that our attractive offer is competitive with lower prices for trading and that liquidity and prices are competitive and in most cases better spread in the NGM-shares. Here at Burgundy you can find Nasdaqomx, Oslo Börs, Aktietorget and NGM shares with one connection and the market data is for free!

How come that the trading in NGM shares came all of a sudden, as it seems?
 The increased technological readiness of participants is crucial to stepping up trading another step; to trade NGM listed shares at Burgundy as well. Since the volumes in these shares are small you might see a greater effect. If you compare the trading volumes on the two Swedish exchanges the trading volume per day in Swedish Nasdaqomx listed shares is around 15-20 billion SEK and in NGM listed shares it is about 8 million SEK.

What we have seen during this year when we have been running Burgundy is that it has taken time for all the trading participants to get all technology set, in order to be able to trade at several market places at the same time. During the last months more and more participants have become ready with the technology and we have seen increasing volumes at Burgundy in Nasdaqomx listed shares.

Where can I find share prices?
You can find share prices with all trading participants and information suppliers as SIX Telekurs, Thomson Reuters, Bloomberg, Infront, Millistream. One can also see the quotes on our site as well.

How are the other Nordic markets doing?
During the last months we have seen some increasing volumes in Oslo listed shares and Finnish listed shares which is great. The volumes are not large yet, but it seems as if they are increasing. We have reached a new level in Norwegian instruments this week around 80 MNOK and well above 500 trades and nearly as much in Finland. In Norway we are strong in the ETF instruments, as in Sweden. It seems as we have got started there now.


Preparations to get started

How are you preparing in order to get ready for trading?
Olof: Presently, we are very busy setting up the platform together with our Trading Participants, this is a challenging task as multi-venue trading is new to most Nordic firms. We are in a position to take a quantum leap and put the Nordics in the forefront of equity trading technology again. The last time was back in the late eighties when Sweden was the first stock market to abolish floor trading.

Is the trading platform ready or are you still working with it?
Olof: We finalized the testing, which has been going on for over six months, in mid-April. Now we are assisting Vendors, Independent software developers and Trading Participants to certify their applications and get them ready for trading.

Is the surveillance system in place and ready?
Olof: Yes, we have a state-of-the art platform capable of detecting abnormal or suspicious trading activity in real-time, supported by a professional staff.

What are you in person focusing on during the days before pre-launch?
Olof: Mostly supporting our competent and energetic staff, who are working flat out in order to get clients connected in time for our May pre-launch. Everybody is really enthusiastic about the service and we have a big interest from Nordic and European firms.


Time to include all market data in media reporting!

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.