Burgundy Readies Millennium Feed Switch

Stockholm-based exchange and multilateral trading facility Burgundy is planning a switch to a new market data feed when it migrates to a matching engine and data platform provided by the London Stock Exchange's MillenniumIT technology subsidiary on June 3, following its acquisition last year by Norwegian exchange Oslo Børs, which already uses the MillenniumIT platform (Inside Market Data, Oct. 16, 2012).

In line with the MillenniumIT specifications, Burgundy will disseminate data via a new datafeed based on the FIX Protocol, though the content and performance of the feed will remain unchanged. Burgundy currently offers a Level 2 real-time feed based on Swedish exchange trading and data technology provider Cinnober's proprietary EMAPI multicast protocol, as well as via a unicast feed for less latency-sensitive trading firms and vendors.

The data will be distributed by Oslo Børs alongside feeds covering Norwegian equities from its own markets, which were previously based on the LSE's legacy Infolect market data protocol before being replaced by ITCH and FIX FAST-based feeds when it migrated to MillenniumIT in November.

Burgundy chief executive Olof Neiglick says he expects the move to increase Burgundy's member base, specifically among traditional large order flow providers and investment banks, as well as among automated trading firms based in London that are already familiar with MillenniumIT's technology and protocols.

"I have 34 trading members in Scandinavia and London today on [the] Cinnober [platform], but I have five more joining from London in June, simply because we'll be part of the much larger Olso Børs-London Stock Exchange network, so absolutely I expect membership to grow," Neiglick says.

"Anyone who can take Oslo or Millennium data today will also be able to get Burgundy data on June 3 with no extra hassle," - Olof Neiglick, CEO, Burgundy

"Anyone who can take Oslo or Millennium data today will also be able to get Burgundy data on June 3 with no extra hassle," when a trading application displaying Burgundy data will become available to the more than 400 members of the LSE's network.

Despite recent instances of MTFs introducing fees for their market data, Neiglick says Burgundy currently has no plans to charge for its data. "It's entirely up to [other MTFs] to select their pricing and business model, but at Burgundy we always said we wanted to build an alternative model with very low trading fees and low market data, and we have no plans to change that," he adds.

In preparation for the switchover, Burgundy will carry out a final round of testing at the end of May, following successful performance testing with all members and data vendors on Saturday, April 27, before going live with the new feed on June 3. Also on June 3, the MTF will officially merge with Oslo Børs and become a market operated under the exchange brand, though Neiglick says Burgundy will retain its own name and branding.