Swiss regulators approve bond trading platform
Galaxy MTF, an organized Multilateral Trading Facility (MTF) for European bonds, has been granted regulatory approval by the Swiss Financial Market Supervisory Authority (FINMA) to operate as a foreign exchange in Switzerland.
This approval will enable local investors to access Galaxy and the fixed income markets.
According to Jean-Philippe Malé, chief executive of Galaxy MTF, Galaxy will “continue to expand its reach in the coming weeks and months.”
The Galaxy bond trading platform accepts only firm orders and aggregates them in a global order book with prices accessible to all participants.
Post trade information and transaction records are made available publicly. Galaxy is also equipped with a compliance monitoring system which checks trading activity in real-time to help safeguard against possible market distortions.
Prior to setting up Galaxy, Malé was head of projects and products at TradingScreen, a New York based provider of electronic trading solutions established in 1999.
Galaxy received approval from the Autorité des Marchés Financiers (“AMF”) and the Autorité de Contrôle Prudentiel (“ACP”), the agency regulating consumer protection and financial stability in France, and became operational in July 2011.
Galaxy was created to improve efficiency, transparency and liquidity in the European fixed income markets, in line with recommendations issued by the Cassiopeia Committee.
The Cassiopeia Committee, chaired by Sylvain de Forges, was set up to express opinions on the compliance of euro corporate bonds platforms proposals in April 2010.
Its executive committee includes Paul Abberley, chief executive of Aviva Investors London, René Karsenti, president of the International Capital Market Association, Stéphane Pallez, deputy chief financial officer of France Telecom, Philippe Rakotovao, global head of credit at Crédit Agricole CIB and Christophe Roupie, global head of trading at AXA Investment Managers.