The Order Machine, a Dutch alternative trading system, changed the ticker symbols for options based on Amsterdam’s AEX Index after a court ruled it infringed NYSE Euronext (NYX)’s trademark rights.
TOM is aiming to increase market share in AEX options to 50 percent next year from 35 percent currently as it takes business from NYSE Euronext’s Liffe derivatives division, Willem Meijer, chief executive officer of TOM, said in a telephone interview today. The Amsterdam-based company is 25 percent owned by Nasdaq OMX Group Inc.
The change of tickers “is important for us as this means our business is secure,” Meijer said. “The product is here for the long term. In 2014 we will aim for more than 50 percent market share in index options.”
TOM and online broker BinckBank NV (BINCK) have to remove all AEX ticker symbols, used to indicate options on NYSE Euronext’s benchmark gauge for Dutch stocks, from their websites within four weeks, The Hague District Court said in a preliminary ruling on July 8. NYSE Euronext’s market share of index options has fallen by 30 percent since TOM and BinckBank began offering contracts based on the AEX on Jan. 21, the New-York based exchange told the judges, according to the ruling.
TOM, whose owners include Nasdaq, BinckBank and ABN Amro Clearing Bank, has said it expects to take as much as 40 percent of the Dutch options market by the end of the year.
BinckBank and TOM have to put a notice on their website saying there is no trading in Liffe options based on the AEX on TOM’s platform, and that these options are not tradeable via BinckBank or its Alex unit, the court said. They will have to pay 25,000 euros ($32,720) for each day they fail to meet the court’s order, to a maximum of 1 million euros. In February 2011, TOM sued Liffe for membership of the derivatives exchange.
NYSE Euronext owns Liffe and bourses in Amsterdam, Brussels, Paris and Lisbon in addition to the New York Stock Exchange. The company has agreed to be bought by Intercontinental Exchange Inc.
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