The pan-European multilateral trading facility (MTF) launches its Chi-Vision smart liquidity consolidation service and confirmed Instinet Europe as the first client.

Pan-European multilateral trading facility (MTF) Chi-X has launched smart liquidity consolidation service Chi-Vision, and has confirmed that its sibling firm, agency brokerage Instinet Europe, is the first client.

Chi-Vision offers customers an additional way to access the Chi-X visible book, the Chi-Delta non-displayed order book, and external liquidity providers including Citadel Securities and Knight Capital Europe. It is available immediately for technical connectivity, and pilot operation will be available later this month. All trades executed through Chi-Vision will be novated to Fortis subsidiary the European Multilateral Clearing Facility (EMCF) as central counterparty.

"Our approach to onward routing will enable Chi-Vision clients to efficiently access a number of external liquidity providers in addition to our own order books through a single connection, while also reaping the benefits of central counterparty clearing," says Hirander Misra, COO of Chi-X Europe. "We look forward to announcing connectivity to additional external liquidity providers in due course," he says.

The service helps consolidate liquidity that clients otherwise could not access easily by offering a range of flexible smart routing strategies to onward route the order to the best possible destination depending on a client's preferred configuration, say Chi-X officials. Some external liquidity providers will be proximity hosted within the same primary datacenter as the MTF's matching engine, so roundtrip latencies for onward routing with Chi-Vision could be below 400 microseconds in some cases.

"We are delighted to be Chi-Vision's first client," says Richard Balarkas, CEO of Instinet Europe. "Not only will our clients now have faster access to both the visible and non-displayed Chi-X Europe order books, but they will also have the ability to access the external liquidity providers."

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