Euronext systems outages blamed for market maker withdrawal

Euronext systems outages blamed for market maker withdrawal

Dutch securities and derivatives trading firm AOT is to pull out of market making on Euronext Amsterdam due to "numerous technical malfunctions on the electronic trading platform".

AOT has handed in its notice to terminate its activities as Primary Market Maker (PMM) and Competitive Market Maker (CMM) on the pan-European bourse.

In a statement, the company says: "Following discussions with Euronext it has become apparent that the exchange cannot provide any technical guarantees regarding the performance of the trading system. For this reason AOT feels that it is no longer commercially sound to continue to fulfill the role as PMM."

The Euronext Bourse is currently upgrading its systems to find and eliminate the bugs which have caused persistent outages in trading over the past few months. In September, 20 futures trading firms filed for damages against Euronext Amsterdam against losses allegedly incurred by delays in receiving pricing data.

AOT says it will conduct an inquiry to assess whether incurred damages resulting from the malfunctioning of the electronic platform can be claimed at Euronext Amsterdam.

Acknowledging the problems with its systems, Euronext says it expects to complete an upgrade in early December which should improve performance. The Amsterdam bourse says it regrets AOT's decision, but hints that problems complying with exchange rules may also have played a factor in the company's decision.

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