Spain set to get first MTF

A group of Spanish "financial executives" say they will launch the country's first multilateral trading facility (MTF) early next year.

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Spain set to get first MTF

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Plataforma Alternativa De Valores Españoles (Pave) will look to take on the Bolsas y Mercados Españoles (BME), which enjoys a near-monopoly in Spain.

The unnamed people behind it say the operation will be based in Barcelona, with a London presence. The group is "currently bringing together the support of Spanish and international banks and funds".

According to a statement, the new alternative platform will enable banks, hedge fund managers and investment funds to directly trade locally and internationally Spanish stocks in a "much more liquid, inexpensive, ultra fast and efficient manner" than offered by traditional exchanges.

Its stated aims are to increase efficiency in Spanish stock trading, improve liquidity, open up access the country's stocks to international players and cut trading costs by up to two thirds.

The move to set up Spain's first MTF comes as, elsewhere in Europe, the market is beginning to see signs of consolidation following the initial explosion of new platforms post-MiFID. Turquoise was recently acquired by the LSE and yesterday Chi-X Europe confirmed that it has received an enquiry from a potential buyer, with Bats, another relatively new entrant, widely touted as the mystery bidder.

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