NEW YORK NASDAQ OMX Group (NDAQ.O) is buying a 25 percent of Dutch cash equity and equity derivatives trading venue TOM, The Order Machine, with an option to secure a majority stake, the transatlantic exchange operator said late on Monday.
The investment in TOM, which has a market share of around 15 percent in single stock options in the Netherlands, fits into Nasdaq's strategy of expanding its derivatives presence across the European market.
Nasdaq is set to debut NLX, a London-based futures exchange offering listed derivatives contracts and backed by European clearing house LCH.Clearnet, in the first quarter of next year.
Nasdaq said it would act as market operator for TOM, and has signed an eight-year contract with the firm to provide a trading platform in London.
The New York-based exchange operator did not give the financial details of the transaction, but said the deal would not have a material effect on the company.
TOM is co-owned by online discount broker and bank BinckBank (BINCK.AS), which provides order flow to the trading venue, along with electronic market maker Optiver, high-frequency trading firm IMC, and ABN AMRO.
The agreement includes an option for Nasdaq to acquire an additional 25.1 percent of TOM's remaining shares to secure a majority stake.
Upon completion of the transaction, NASDAQ OMX will have one seat on TOM's supervisory board, and TOM will add one person from Nasdaq to its management Board. The acquisition is subject to regulatory approval.
(Reporting By John McCrank; Editing by Theodore d'Afflisio)
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