EDX London and Oslo Børs launch on SOLA®
EDX London and Oslo Børs have today successfully begun trading derivatives on TMX Group’s SOLA® trading system.
The new platform’s superior technology brings increased speed and functionality to participants trading derivatives and for the first time London Stock Exchange Group’s clearing house CC&G will be providing clearing services in the UK to EDX London. Risk and central counterparty clearing will continue to be provided by LCH.Clearnet and for Oslo Børs members through Oslo Clearing, a company in the Oslo Børs VPS Group.
A range of new Nordic products has been introduced, including an improved suite of Nordic indices, a broadened choice of Finnish derivatives and Fixed Income futures. Together, EDX London and Oslo Børs are now the most comprehensive trading venues for Nordic and Russian derivatives, offering a unique combination of products not available for trading anywhere else.
The migration of EDX London onto SOLA® marks the completion of the first step in the development of the previously-announced strategic partnership in derivatives between TMX Group and London Stock Exchange Group. This strategic partnership was cemented when TMX Group took a 19.9% ownership stake in EDX London in May 2009.
“We are very pleased that the migration to our SOLA® platform was successfully completed,” said Alain Miquelon, President of Montreal Exchange, TMX Group’s derivatives exchange. “TMX Group is excited about the growth opportunities that lie ahead for EDX London in the months and years ahead.”
Jesper von Zweigbergk, Senior Vice President Derivatives at Oslo Børs said:
“We have successfully migrated the Norwegian derivatives market to a new and enhanced technology platform. This will ensure a stronger base for further development of derivatives trading in Norway and the Nordic region.
“We are pleased to announce that we have brought all of the major market players on board, and with the support of the leading banks and financial institutions of Scandinavia and Europe, we have ensured continued and increased market efficiency. We are confident that this will further strengthen our position as the superior market leader in Norwegian derivatives trading.
“The launch of SOLA® is the first major milestone in the strategic partnership between Oslo Børs and the London Stock Exchange Group announced earlier this year.”
Massimo Capuano, Head of Post Trade at London Stock Exchange Group said:
“We are delighted that as part of London Stock Exchange Group, CC&G is providing a new competitive clearing service to clients for EDX London. In July this year we received a license for clearing in the UK and this is the first new service to be delivered. “
Raffaele Jerusalmi, Director of Capital Markets at London Stock Exchange Group said:
“EDX London’s successful launch onto SOLA® means a faster, more advanced technology offering to our clients and the introduction of a diverse, new range of products with simple, competitive pricing.
The development of EDX’s Scandinavian derivatives offering builds on the strength of the already highly successful Russia IOB service and demonstrates EDX‘s ability to adapt its offering in line with customer demand. Working together with TMX Group we plan to create a market with a bigger scale and wider range of products.”
TMX Group’s trading system SOLA® offers a high level of performance, capacity and increased functionality with the scalability and flexibility to enable the development of new products and considerable volume growth.
EDX London and FTSE have worked closely with market participants to develop an enhanced suite of indices from the Nordic region, these include:
- FTSE Sweden 30
- FTSE Denmark 20
- FTSE Finland 25
In addition, EDX London will offer futures based on Swedish government bonds, as well as on the Swedish and Norwegian interbank rate. These will be available for trading on-book, offering a modern and transparent market place for these products for the first time.
GATElab, who already provide a service for Borsa Italiana to around 90 customers to access Italian markets, will be providing the user interface for the new system, with its front end clearing technology BCS and trading system BTS based on GATElab traderpath platform. This platform has been built in response to buy-side and sell-side needs and tailored specifically for EDX.
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For further information, please contact:
Lauren Crawley-Moore Press Office +44 (0)20 7797 1222
London Stock Exchange firstname.lastname@example.org
Jesper von Zweigbergk, +47 22 34 19 50
SVP Derivatives Oslo Børs email@example.com
Carolyn Quick +1 416 947 45 97
TMX Group firstname.lastname@example.org
Notes to editors:
SOLA® is TMX Group’s automated derivative trading system and has been licensed by London Stock Exchange Group plc for use by EDX London and Oslo Bors. SOLA® is a leading derivatives technology platform developed by the TMX Group. It is currently used to trade Canadian derivatives at Montreal Exchange and US equity options at Boston Options Exchange.
Created in 2003, EDX London leverages the strength and liquidity of the London Stock Exchange to provide the international investor community a gateway to Scandinavian and Russian derivatives. Members of EDX London and Oslo Børs trade futures and options through a linked order book, which enhances liquidity and makes business easier and more cost effective.
In December 2006, EDX London launched its award winning Russia IOB Service, offering derivatives based on depository receipts listed on the London Stock Exchange's International Order Book. Two years on, well over 20 million contracts have been exchanged on the service. In December 2008, EDX London became a wholly owned subsidiary of the London Stock Exchange.
In May 2009, TMX Group took a 19.9% stake in EDX London. Together, TMX and the London Stock Exchange Group (who own the remaining 80.1% of EDX) plan to cooperate on a joint derivatives vision.
EDX London is a Recognised Investment Exchange, regulated by the United Kingdom’s Financial Services Authority.
About Oslo Børs
Oslo Børs offers the only regulated markets for securities trading in Norway providing a full product range including equities, derivatives and fixed income instruments. Oslo Børs is part of the Oslo Børs VPS Group which consists of the four companies Oslo Børs, VPS, Oslo Clearing and Oslo Market Solutions. The group offers marketplaces for listing and trading in securities, registration of ownership and clearing and settlement of securities in Norway, market data and on-line solutions. www.oslobors.no
About TMX Group (TSX:X):
TMX Group's key subsidiaries operate cash and derivative markets for multiple asset classes including equities, fixed income and energy. Toronto Stock Exchange, TSX Venture Exchange, Montreal Exchange, Natural Gas Exchange, Boston Options Exchange (BOX), Shorcan, Equicom and other TMX Group companies provide trading markets, clearing facilities, data products and other services to the global financial community. TMX Group is headquartered in Toronto with offices in Montreal, Calgary and Vancouver. For more information about TMX Group, visit our website at www.tmx.com.
About London Stock Exchange Group:
London Stock Exchange Group is Europe's leading diversified exchange business, incorporating Borsa Italiana and London Stock Exchange. With over 500 member firms and more than 3,000 companies quoted across its markets, the Group operates the largest and most liquid equity marketplace in Europe.
London Stock Exchange itself is the world's most international exchange with over 600 overseas companies from more than 70 countries quoted on its markets. These figures include international companies on AIM, the London Stock Exchange's growth market, which has grown to become the world's most successful market for small and medium sized enterprises with 1,385 companies at the end of July 2009.
The Group offers trading in a wide range of instruments, holding the number one position in the trading of exchange-traded products (ETFs and ETCs) and through its interest in MTS, is Europe’s leading platform for the trading of fixed income products. Through Borsa Italian’s MOT market it offers a comprehensive range of European corporate and government bond trading services. Its Italian Derivatives Exchange Market (IDEM) sees over €2.5 billion worth of trading every day and through EDX London the Group provides a facility for the trading of Scandinavian and Russian equity derivatives.
London Stock Exchange Group also offers post-trade services such as netting, clearing and settlement on an efficient and competitive basis. These include services from Monte Titoli, the Central Securities Depository for all Italian financial instruments, and Cassa di Compensazione & Garanzia (CC&G), which in July 2009 was granted Recognised Overseas Clearing House (ROCH) status by the FSA to operate in the UK.