U.S. exchange operator Nasdaq OMX Group is seeking to establish a London-based derivatives trading platform, Financial Times reports. The platform will compete against Deutsche Borse, NYSE Euronext and the London Stock Exchange.
The move is an attempt to set up a trading presence in London after its European share trading platform Nasdaq OMX Europe shut down last year after it could not run up enough market share. The new Nasdaq derivatives platform will use an existing license acquired by the former platform when it was originally set up as a multilateral trading facility. On the new platform, interest rate derivatives traders who also trade and clear over-the-counter interest rate swaps may not need to post as much collateral at LCH.Clearnet because the two types of derivatives would be considered “economically equivalent”.
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