The new platform provides a central hub for European equity finance participants to bring the execution of their equity hedge trades on-exchange. Squawker said six investment banks are participating.
Equity finance traders can settle with three equity central counterparties through the platform, which also helps with trade reporting in compliance the second Markets in Financial Instruments Directive and Regulation.
It also has pan-European coverage of equities, depository receipts and exchange-traded funds.
According to Squawker, the equity finance platform overcomes restrictions and limits on trading in certain markets, such as automatic registration of share ownership in Spain.
Chris Gregory, CEO and co-founder of Squawker, commented: “The European equity finance market is currently estimated to trade over €2.5 trillion per annum. With six of the top ten banks live and trading through Squawker, we are already seeing some significant trading traffic over the platform.”
“With a further three of the top ten banks close to completing their deployment projects, Squawker has worked hard to provide the essential support that the equity finance community has asked us for.”
Squawker, which specialises in execute hedging and capital optimisation transactions on-exchange, has added Ian Axe and Derek Bandeen to its advisory board.
Axe was recently named as CEO of investment bank Panmure Gordon and is the former chief executive of LCH. He also previously worked at Barclays Capital.
Bandeen was global head of equities at Citigroup.
“The top-tier investment banks are under increasing regulatory pressure for on-exchange transparency and CCP cleared models across their operations,” Axe said. “They are all seeking to implement straight-through processing for equity finance to replace the traditional over-the-counter process.”
Bandeen added: “Squawker’s platform enables the large equity finance players to bring their execution of equity hedge trades on-exchange and provides a structure for them to manage their counterparty risk with CCP clearing.”