Only a few years ago, Euronext derivatives appeared a sleepy exchange – unable to deal with a new contender. Things have changed. TOM, aka the Order Machine, is in vulnerable position. It is up for sale as the owners can’t decide on the strategy. Euronext moved forward to spoil the sale of TOM.
In an ordinary notice (pdf), the exchange announced a client rebate scheme. Euronext will rebate all exchange trading fees above a certain monthly threshold. For stock options, the threshold is set at 200.000. These are contracts traded on client accounts. Liquidity providers can’t apply for this discount. The threshold for index options is lowered from the current 115k to 100k contracts.
Amazingly, the rebate scheme will be in place for two years. That’s unusual, it runs until December 31th, 2018. Euronext is saying “we are determined to defend our market and we are not afraid to be aggressive“.