The Order Machine, a Dutch trading venue for options, said it processed its 10 millionth contract today as it takes business from NYSE Euronext (NYX)’s Liffe derivatives market.
“We’ve seen a lot of newcomers to the market,” Willem Meijer, chief executive officer of TOM, said in a telephone interview today. “We will continue to grow. In 2014 we will aim for more than 50 percent market share in index options.”
TOM’s volume is driven mostly by clients using its so-called smart order router, which compares different prices on exchanges and executes against the best available, Meijer said. BinckBank NV (BINCK), a shareholder in Amsterdam-based TOM, is the only broker using the router. Another broker will join by year-end, he said. In addition, the broker Timber Hill LLC will become a market maker for TOM, Meijer said.
TOM, which is 25 percent owned by Nasdaq OMX Group Inc., said it will increase market share in options of the Netherlands’s benchmark AEX Index to 50 percent next year from 35 percent currently. TOM changed its ticker symbols for options based on the AEX last month after a court ruled it infringed NYSE Euronext’s trademark rights.
NYSE Euronext owns Liffe, bourses in Amsterdam, Brussels, Paris and Lisbon, and the New York Stock Exchange. The company has agreed to be bought by Intercontinental Exchange Inc.
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