NMa: green light to new trading platform for stocks and derivatives

Retail broker BinckBank and derivatives trading company Optiver are planning to set up a joint venture: a new trading platform for stocks and derivatives that would compete with the trading platforms of NYSE Euronext Amsterdam. BinckBank and Optiver had already notified the NMa of their intention to create this joint venture, and the NMa has now decided to give the green light.

The joint venture will match orders of BinckBank clients to orders of Optiver. Optiver needs to offer lower or similar prices for stocks and derivatives than on the platforms of Euronext Amsterdam and Euronext Liffe Amsterdam. The platform will initially be open to BinckBank and Optiver only. However, BinckBank and Optiver indicate that other banks (so-called brokers, competitors of BinckBank) will be admitted in the foreseeable future, as well as competitors of Optiver (so-called marketmakers) in the longer run.


The fact that Optiver faces much competition on the derivatives trading platform of Euronext Liffe Amsterdam has also been a factor in the NMa's decision not to attach any conditions to the joint venture. Moreover, Optiver's obligation to offer lower or similar prices vis-à-vis the prices on the Euronext Amsterdam platforms guarantees ongoing competition between Optiver and its competitors for BinckBank's orders. Also, entry barriers to the Euronext platform as derivatives marketmaker remain low. Marketmakers will eventually be admitted to the new platform. In addition, BinckBank and Optiver will offer full transparency into the prices of the financial instruments that are traded on the new platform. Eventually more than half of the private orders in derivatives are expected to remain on the trading platform of NYSE Euronext Liffe Amsterdam.


A permit from the Netherlands Authority for the Financial Markets (AFM) is still needed before the new trading platform can be opened.