Transcript www.taurus.se

IR Symposiet
October 2, 2008
© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.
A World in Transition
Every day media tells us that
we need to do something...
What?
© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.
2
Competitive EU Landscape:
Trading-Clearing-Settlement
Derivatives
trading
BES
T
NYSE
Euronex
t Liffe
ED
X
IDE
M
POSI
T
Octopu
s
Equities
trading
Eur
o
CC
P
FWB/
DB
Euro
Milleniu
m
LCH
Clearn
et
Liffe
Clearing
Settlement
Monte
Titoli
CC&
G
Eurex
Clearin
g
SIS
xclear
SI
S
Clearstream
NASDA
Q OMX
DM
Clearing
Euroclea
r NCSD
Link-Up
Central Bank
Burgund
y
MiFID
The Code
NASDA
Q OMX
Europe
ChiX
BAT
S
EMC
F
The Code
The Code
T2
S
T2
S
Central Bank
© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.
MiFID
Liquidn
et
NASDAQ
OMX Nordic
Exchanges
SW
X
Smart
Pool
NASDA
Q OMX
DM
The Code
Borsa
Italian
a
LS
E
Turquoise
Clearing
Eure
x
Baika
l
NYSE
Euronex
t
Project
Rainbo
w
3
Central Bank
New Trading Venues
• Chi-X has emerged a serious competitor to established exchanges in Europe
- Has been able to take around 5% of all the share trading in Europe
- Has over 15% of all trading in FTSE 100 stocks listed on LSE
• Other new venues are:
- Turquoise
- BATS Europe
- NASDAQ OMX Europe
- Burgundy
© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.
4
Chi-X Weekly Total Turnover
© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.
5
Chi-X Market Share in the Nordic Markets
© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.
6
NASDAQ OMX Europe
•
•
•
•
Setup
•
-
London based MTF (FSA regulated)
-
Proven low latency matching engine (INET)
•
Total: 300 + European blue chips
-
Cover all main European indices
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Composite displayed/non-displayed book
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Pre and post-trade anonymity
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Consolidated European Best Bid Offer
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Order routing functionality
•
Market data
-
Low latency data feed
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Full depth order book access
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Members and vendors treated equally
Connectivity services
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Co-location in the City of London
-
Carrier of choice
© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.
7
Austria, Belgium, Denmark, Finland, France, Germany,
Ireland, Italy, Netherlands, Norway, Portugal, Sweden,
Switzerland, UK
All stocks traded in local currency:
-
•
Liquidity provider-taker model
Market coverage
-
Equities trading
-
Value based fees
DKK, EUR, GBP, NOK, SEK, SFR
Post trade
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CCP partnership
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Domestic settlement
The Way Forward for the Nordic Market
• CCP for cash trading
• Improved latency – Inet Nordic
• EDX – developing the Nordic clearing house
• Part of a global exchange
• Multi asset class exchange
© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.
8
Not only threats – a lot of possibilities
New assets
Clearing
New segments
Listing
© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.
9
Business Opportunities
OTC
Exchange
Business
Opportunities
• Low transparency
• High transparency
• Low standardization
• High standardization
• Low regulation
• High regulation
© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.
10
Exchange Traded vs. OTC Traded
• Limited liquidity
• Transparency
• Low grade of standardization
• Liquidity
• Counterparty risk
• Standardization
• Problematic valuation
• Security
• No concentration of order flow
• Legal framework
• Low transparency
• Concentration of order flow
• Not independent
• Ease of valuation
• Independent
Stock Exchange
© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.
Marketplace operator
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© Copyright 2008, The NASDAQ OMX Group, Inc. All rights reserved.