Kamis, 03 Juli 2008

nasdaq secret

In September 2008, the NASDAQ OMX Group Inc. will launch a pan-European trading platform overseas which will target approximately 5% of trading in European blue chips. This 5% is expected to be made in the first year alone, rising to an expected 20% in the future. The company is hoping the will be able to cash in on market shares from both multilateral trading facilities like Chi-X Europe and Turquoise as well as incumbent exchanges. Chi-X Europe and Turquoise both have high speed trading engines and a competitive total training cost that is attractive to the NASDAQ platform leaders.

The trading venture, which will work with the Nordic and Baltic stock exchange operator OMX and its existing venues, will be the first of its kind to offer routing that is based on the best bid made in Europe. Called the NASDAQ OMX Pan-European Market, it will be treading new waters with its unique offering. Currently there are no requirements under the new European Union trading rules that state routing must be made on the best bid that is thrown on the table.

“I think there is absolutely room for new entrants. It will take awhile for the market to sort things out to find anywhere from four to five large markets,” Christopher Concannon stated when questioned about the new venture. Concannon is the newly appointed head of NASDAQ OMX’s pan-European market. “Clearing and settlement is a critical matter,” he added.

Fortis, European Central Counterparty Ltd., SIS x-clear, and LCH Clearnet Group are all candidates to partner into this transatlantic venture with NASDAQ. There is still no word on what the trading fees will be or how they will be set up, but it is believed that the fee structure will be similar to the one that is in place with Chi-X Europe. Concannon, who joined NASDAQ in 2003 as one of the executive vice presidents assures traders all over that the pricing will be competitive.

NASDAQ OMX is expected to incur losses during the initial start-up as they route their current traders to other liquidity pools until they are set-up. The liquidity providers will earn a reward for every trade made and the traders will receive a discount from the providers. The platform is supposed to be low-cost and involve a staff of approximately twenty people and only a small market share to get their foot in the door and start making money.

0 komentar:

Template by : kendhin x-template.blogspot.com