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19 May 2009
Burgundy, a new Nordic marketplace for securities trading, has received regulatory approval from the Swedish Financial Supervisory Authority to operate a multilateral trading facility.
Burgundy is a new trading facility for listed Nordic securities. The goal is to offer customer-focused, high-performance and cost-efficient securities trading services to participants, thus helping to establish the Nordic region as a financial hub. The facility will aim to ensure high liquidity, low transactional costs, short response times and optimal execution. Burgundy aims to become a leader in the Nordic securities trading market.
The Burgundy trading platform is operated as a membership multilateral trading facility. Its establishment was enabled by the entry into effect of the EU Markets in Financial Instruments Directive on November 1 2007, in order to stimulate competition and eliminate borders in securities trading.
Burgundy is owned by a consortium of leading Nordic banks and securities trading firms representing almost half of the trading volume in Nordic equities. Burgundy's shareholdes are Avanza, Carnegie, Danske Bank, DnB NOR Bank, Evli Bank, Handelsbanken, HQ Bank, NeoNet, Nordea Bank, Nordnet, SEB, Swedbank, Ålandsbanken and Öhman.
Burgundy has appointed Cinnober as the technology provider for the trading facility. Cinnober provides systems to a number of leading exchanges, including the American Stock Exchange and the Chicago Board Options Exchange.
Trading in a limited number of Swedish shares commenced on May 8 2009. Danish, Norwegian and Finnish shares will be added during a soft-launch period until June 12 2009, when a complete universe of Nordic blue-chips and exchange-traded funds will become available. After that, new stocks will be added on request. The aim is to include all 800 Nordic shares by the end of 2009.
From the fouth quarter of 2009 Burgundy will introduce a central counterparty risk service, meaning that the blue-chips will be cleared by the European Multilateral Clearing Facility in Amsterdam. Burgundy will also introdude a warrants trading facility before the end of the year.
For further information on this topic please contact Niclas Rockborn or Nils Unckel at Gernandt & Danielsson Advokatbyrå by telephone (+46 8 670 66 00) or by fax (+46 8 662 61 01) or by email (firstname.lastname@example.org or email@example.com).
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