NYSE Euronext and two European investment banks, BNP Paribas and HSBC, announced their partnership to create a new trading platform to be known as Project SmartPool.

This new platform is designed to make the execution of large orders in European listed stocks easier. Project SmartPool will be accessible to all European sell-side firms, and will be managed and run by NYSE Euronext, which will retain a majority share of the capital in this joint venture.

As of November 1, the Markets in Financial Instruments Directive will eliminate the remaining concentration rules for equity trading that apply within the European Union. This is expected to create a business opportunity for new alternative trading venues.

Project SmartPool is specifically designed to meet the trading needs of large institutional order flow, and will complement the limit order book offered by NYSE Euronext in Europe already. Unlike a traditional exchange, which provides full pre-trade transparency, Project SmartPool will enable users to interact without disclosing their identity or the size or price at which they are willing to trade. “This meets financial institutions’ need for minimal information leakage and market impact within the standards set by MiFID,” it says.

Roland Bellegarde, head of European cash markets and member of the NYSE Euronext management committee said, “ With the formation of the Project SmartPool, NYSE Euronext is the first exchange in Europe to announce an electronic block trading market, building a strong alliance between our own experience as the leading European marketplace and our partnering banks’ expertise in large order execution. We would welcome further banks who are interested in participating with us in this exciting new project.”