Oslo Børs is to take over the operations of rival Swedish exchange Burgundy as it bids to raise its market share in the Nordics and challenge Nasdaq OMX for regional dominance.
In a statement, Oslo Børs says that the acquisition will help to build market share and boost declining profit margins in equities trading.
Says the exchange: "Oslo Børs and Burgundy will together build a platform for growth, and will be a strong and viable competitor both for other Nordic exchanges and for foreign trading platforms that offer trading in Nordic securities.
Established in 2008 by a consortium of Swedish banks and brokerages as a corrective to the dominance of Nasdaq OMX, Burgundy currently commands a turnover of approximately $2 billion in Swedish share trading, a fraction of the $33 billion claimed by its bigger rival.
Under the deal, Oslo Børs will scrap Burgundy's Cinnober-based trading platform and migrate the exchange to the London Stock Exchange's Millennium system. Oslo is moving to Millennium next month and Burgundy will follow some time in 2013.
Oslo Børs says it is committed to continuing and developing Burgundy's activities in close collaboration with its current owners, and to that end will establish a new customer-based 'advisory board' in Stockholm. Burgundy's CEO, Olof Neiglick, will continue at the company's helm following its acquisition.
Financial terms and anticipated cost savings have not been disclosed.