Nasdaq OMX Group Inc. said brokerages including Citigroup Inc., UBS AG and BNP Paribas SA will join its European derivatives market when the new venue starts operations tomorrow.
Marex Spectron Group, Getco Europe Ltd., Nomura Holdings Inc., Newedge Group SA and Royal Bank of Scotland Group Plc will also be involved, Nasdaq OMX said in a statement today. The London-based market, known as NLX, will offer six products initially, including futures on the German bund, Euribor contracts and short sterling.
NYSE Euronext’s London-based Liffe currently dominates the market for short-term interest-rate derivatives. Frankfurt-based Eurex, Europe’s largest futures exchange and a unit of Deutsche Boerse AG, is the main venue for trading long-term products. CME Group Inc. also plans to open a market in London this year, starting with currency futures.
“NLX brings competition to interest rate derivatives in Europe,” Mike du Plessis, global co-head of ETD agency execution at UBS, said in the statement. “With new regulations coming into force globally, we are keen that market infrastructure evolves.”