02 July 2012
As a result, fund investors may now trade investment funds on a continuous basis from 09:00 to 17:35 every working day. Investors are also able to trade investment funds at actual market prices and not only the previous day’s prices. Investment fund prices may therefore reflect market reality throughout the day.
Specialist liquidity providers calculate fund prices for which they guarantee liquidity on a constant basis following market trends.
The Luxembourg Stock Exchange has created this segment with the cooperation of KBL European Private Bankers and Schnigge Wertpapierbank AG, who will act as liquidity providers. They guarantee rapid execution of market orders or limited orders in relation to spreads posted in real time on the website of the Luxembourg Stock Exchange. In addition, the liquidity providers guarantee a minimum posted volume and larger volumes may also be executed on demand.
All pre-trade and post-trade information can be accessed in real-time and free of charge, on the website of the Luxembourg Stock Exchange at www.bourse.lu.
Romain Bernard, Head of Third Party Funds, Global Financial Markets at KBL epb said: “Considering both, our long term expertise in funds universe and our pricing capacity on the Luxembourg Stock Exchange over the past decades, it is obvious for us to step into the challenging new live quoting segment setup by the Luxembourg Stock Exchange.
We have the strong belief that the newly created live segment animated by ourselves and Schnigge will be highly attractive for retail investors. Competitive real time prices and standard ICSDs settlement will give access to a wide audience and will benefit to all parties.”
The processes and the technology behind the continuous trading fund segment are the same than those used for equities and bonds. Investment funds traded on the Luxembourg Stock Exchange offer all the advantages of trading on a Stock Exchange. The UTP trading platform used by the Luxembourg Stock Exchange enables rapid and efficient order execution, with the transmission and execution of an order taking just a few seconds.
KBL European Private Bankers based on Ullink and MACD technologies and networks is now happy to deliver this new trading segment to their clients and to investors in investment funds.
“ULLINK is pleased to be providing the gateway to this new segment with our partners in Luxembourg,” commented Laurent Useldinger, CEO of ULLINK. “The gateway is co-located at the exchange in order to provide an easy connection service for the community, increasing our global coverage on UL NET, our fully managed order routing network for the financial community.”
George Macdonald, CEO of MACD said: "We are very pleased to be one of the technology providers in this innovative segment. KBL European Private Bankers has used our quoting software in the bond market since 2005 and it is a sign of their trust that they have now extended it to make markets in funds."