TOM (The Order Machine) announces that the Netherlands Authority for the Financial Markets (AFM) has granted TOM MTF an extension of its license for trading derivatives.
This means that now TOM MTF may allow its members to trade derivatives on the TOM MTF platform. In the initial phase of the derivatives platform TOM MTF members are only allowed to trade in a limited number of option series.
For all derivative transactions entered into on TOM MTF, Holland Clearing House N.V. (HCH) will act as central counterparty. As such HCH will assume the counterparty risk of such transactions. HCH is supervised by AFM and by the Central Bank of the Netherlands, DNB.
Willem Meijer, CEO of TOM: "Obtaining a license for derivatives is an important milestone for TOM. The start of TOM MTF in derivatives fulfills an important need of market participants for competition in the derivatives market landscape."
TOM Smart Execution expects to facilitate derivatives trading for retail investors in the last quarter of this year. As of that moment TOM will compare derivatives prices on various platforms for retail investors. TOM Smart Execution is already providing cash segment best execution on various platforms.