Burgundy on track

Burgundy, the new trading facility for listed Nordic securities, chose Cinnober as its technology provider last fall. Just over seven months later, their launch is taking place according to plan and Cinnober can proudly add another “on-time, on-budget, on-plan” project to its track record.

Burgundy challenges local incumbent exchanges, such as Nasdaq OMX and Oslo Börs, with a solution that represents the new generation of trading platforms. The purpose of the trading facility is to ensure high liquidity, low transactional costs, short response times and best execution, according to Burgundy.

Trading commenced on May 8 with trading in a limited number of Swedish shares. Danish, Finish and Norwegian shares were added during a soft launch period in the weeks that followed. On June 12, a complete universe of Nordic blue-chips and exchange traded funds (ETFs) will be made available.

Turnkey trading and market surveillance

Burgundy wanted to offer an advanced platform which provides more cost-effective securities trading to members and investors. Burgundy also aimed from the very start to lead in terms of low latency.

Choosing a platform from Cinnober was therefore a natural choice. Burgundy’s CEO, Olof Neiglick, was impressed with Cinnober’s track record. “We wanted a platform which had been combat proven and based on modern technology to cater for algorithmic trading and high-frequency firms,” said Neiglick.

Cinnober delivered, and now hosts and operates, a turnkey solution based on the TRADExpress Trading System. Burgundy also uses Scila Surveillance, the turnkey solution for a seamless route from detection to presentable evidence delivered by Cinnober. “Confidence is one of the most important assets for any marketplace and an effective market surveillance tool is a key component”, Neiglick added.

Burgundy is owned by the leading Nordic banks and authorized securities trading firms, representing almost half of the trading volume in Nordic equities. Burgundy’s goal is to have 25% of the Nordic share trading market by the end of 2010. The multilateral trading facility is authorized and regulated by the Swedish Financial Supervisory Authority.