NASDAQ OMX NLX (“NLX”), the London derivatives market for trading a range of both short-term interest rate (STIRs) and long-term interest rate (LTIRs) euro- and sterling-denominated products, reaches its first 12 months of trading, capturing over 15% moving average market share in Euribor®, the world’s second largest STIRs futures contract.
”Since the launch of NLX we have developed our volumes, vendors, number of participants and the quality of our orderbook”, said Charlotte Crosswell, Chief Executive Officer of NLX. “With a Euribor® market share already over 15% and an orderbook that matches or beats incumbents’ best bid and offer up to 80% of the time, we have an established market that is attracting increasing demand from clients looking for the best price, reduced fees and initial margin savings. The quality of the market provides a springboard to launch our next generation of products and develop portfolio margining further to support our continued growth and meet customer needs.”
“UBS is delighted to mark its first year as a founding participant of NLX”, said Mike du Plessis, Managing Director, ETD Execution Services at UBS. “Following NLX’s development of meaningful market share and often additive quality in its orderbook, UBS has developed a smart aggregator that enables us to measurably and intelligently enhance the total liquidity available to our clients.”
“NLX offers something different in the European derivatives landscape”, said Andrew Chart, Senior Director, Origination and Structuring, Prime Clearing Services at Newedge. “With an established market in place, it provides a solid platform to list new products, such as options and swap futures, which can help our clients in the fast changing regulatory framework.”
“The NLX market has developed well in the first 12 months. With LCH.Clearnet as the clearing provider, participants benefit from significant offsets through portfolio margining opportunities that are not available on other markets”, said Alberto Pravettoni, Global Head, Repo & Exchanges at LCH.Clearnet. “It remains an important strategic objective for us to continue to work with NLX and the market to extend portfolio margining across additional assets.”
“The launch of NLX has created additional liquidity in the market place and new trading opportunities for our clients”, said Mark Phelps at G. H. Financials. “With the launch of innovative strategies like the suite of NLX Ted Spreads, and the quality of the NLX orderbook, there are opportunities now that didn’t exist previously. We are also seeing increasing numbers of requests from clients for market access and clearing for NLX so the future is looking bright for this market”