Nasdaq OMX boosts presence in Dutch derivatives market
Nasdaq OMX Group has bought 25% of Dutch equity and derivatives trading platform TOM – The Order Machine – as well as an option to acquire a further 25.1% stake.
The stake has been acquired from current owners including BlinckBank – the online broker – Optiver, IMC and ABN Amro.
Hans-Ole Jochumsen, executive vice president Global Data Products and Transaction Services Nordics, Nasdaq OMX said: “This transaction creates a compelling combination of technology, market expertise, and geographic opportunity.”
“As the only derivatives MTF in Europe with a retail focus, TOM has secured significant market share in single stock options. We intend to leverage their first mover advantage and seize the opportunities created by the regulatory environment in Europe, by expanding investor access to products and markets that improve price discovery and lower trading costs.”
TOM’s business growth rests on its TOM Smart Execution engine, which compares prices in different markets in milliseconds. This is intended to offer investors a best price at any time. Nasdaq OMX said this has helped TOM obtain a 15% market share in single stock options in the Netherlands – a market that traded some 75 million contracts in 2011.
Nasdaq OMX will act as market maker for TOM and provide a Genium Inet trading platform in London as part of an eight year contract signed between the two companies.