Nasdaq OMX has acquired a 25% stake in Dutch MTF The Order Machine (TOM) as it bids to build up its European equity derivatives business.
Financial terms were not disclosed for a deal that also gives Nasdaq OMX the option to buy another 25.1% and take a majority stake in TOM. Current owners, BinckBanck, Optiver, IMC and ABN Amro will all stay onboard with reduced stakes.
TOM says that its proprietary search engine, 'Smart Execution', has helped it secure a market share of around 15% for single stock options in the Netherlands.
The Nasdaq OMX deal is designed to help widen growth throughout Europe and will see the transatlantic exchange operator act as market operator for TOM and provide a Genium Inet-based trading platform, which will be based in London rather than the current Stockholm site.
Willem Meijer, CEO, TOM, says: "We believe TOM has significant geographic expansion opportunities and now will be able to leverage Nasdaq OMX's global network and proven track record of market penetration. Moreover, with their progressive technology and market expertise, we believe Nasdaq OMX and TOM can deliver on the investor demand for access to a variety of derivative products."
Hans-Ole Jochumsen, EVP, global data products and transaction services, Nordics, Nasdaq OMX, adds: ""With our investment in TOM we strengthen our position in Europe offering clients advantages in their equity and options trading through technology. The Smart Order Router of TOM is an excellent example of technical innovation in favour of the client."
The deal, subject to regulatory approval, will not have any material effect on Nasdaq OMX's finanacial position. The exchange will take one seat on the TOM supervisory board and put one person on the management board.