03.08.2012

Nasdaq OMX Revamps Nordic Trading Platform

03.08.2012
Terry Flanagan

Nasdaq OMX has revised its Nordic trading platform technology to allow for all-asset, cross market trading.

The move is the latest instance of exchange operators streamlining their operations as they look to cut costs and create synergies between business units.

“With one common technology platform for all asset classes to maintain and upgrade, and one membership for all derivatives products, members can now trade commodities on the same platform as cash derivatives and fixed income derivatives on all Nordic and Baltic markets and the U.K. power market,” Geir Reigstad, head of Nasdaq OMX Commodities told Markets Media. “There are system development and maintenance savings both for us at Nasdaq OMX and for our members.”

The trading of commodities has recently been introduced on to Nasdaq’s Genium INET platform, creating an all-asset, cross-market technology platform. All asset classes from all eight markets in Sweden, Finland, Denmark, Norway, Iceland, Lithuania, Latvia and Estonia are now tradable on one common INET-based technology platform.

Commodities is the final asset class to be migrated on to the Genium INET platform and includes a wide variety of power derivatives, carbon emission and natural gas derivatives that will now be traded on the same technology platform as stocks, bonds, equities and fixed income derivatives. Based on Nasdaq’s INET technology, Genium INET is a comprehensive multi-asset trading and clearing system with ultra-low latency performance and high reliability and operating capacity.

Exchanges have put a renewed focus on investing in their internal infrastructure. As the global capital markets become more interconnected, exchange operators have needed to expand their connectivity capabilities. Deutsche Börse plans to gradually roll out an expansion of its global network over several months. It also plans to introduce a new trading system on its Eurex derivatives trading platform by the end of the year. It took about three months for affiliate International Securities Exchange to complete the rollout of Optimise, on which the new Eurex technology will be based.

NYSE Technologies recently launched its newest data center in Toronto joining existing centers in Mahwah, N.J., Chicago, Basildon in Essex in the U.K, and Tokyo. The data centers allow investors, particularly high-frequency trading firms, access to low-latency connections by placing them as close as possible to the various matching engines of the NYSE Euronext exchanges. It plans on adding more liquidity centers in the coming months as part of its overall growth strategy.

Exchange operators in the U.S. and Canada have made global investments in recent months as an alternative to full-on consolidation and to gain scale.

Chicago’s CME Group recently increased its stake in the Dubai Mercantile Exchange to 50%, which will allow the Middle Eastern bourse to continue growing its operations.

TMX Group recently announced that it has acquired Australia’s Razor Risk Technologies, based in Sydney, which provides credit risk software to clearing houses, stock exchanges, financial institutions and brokerages. In addition, 91.2% of the shares in Razor were tendered, allowing TMX the chance to acquire the company in full. TMX also recently took a 16% minority stake in the Bermuda Stock Exchange, making it one of the largest shareholders of the offshore exchange.

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