Euronext party crashing TOM’s sale

3 comments / November 18, 2016

beursplein5Only 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“.

Aimed at Binck

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DeGiro starts with US derivatives

27 comments / November 8, 2016

trumpDeGiro has a smart idea of timing. On US election day, the broker starts with trading in US futures and options. It kicks of with the famous S&P e-mini futures.

The e-minis are the most popular equity futures in the world. It trades virtually round the clock on CME’s Globex.

This is a big deal. For investors there is the home market, and there’s the USA. The introduction of e-mini’s carry more marketing value than prime-time TV commercials. Introduced are e-mini S&P (ES) and Nasdaq 100 (NQ) futures and options.

The fees are $0.50 per contract plus the fees for the exchange CME. The CME doesn’t come cheap for non members. It charges $1.17 for e-mini futures and $0.55 for options (see here). Also, DeGiro charges €5 each month you carry any position on the CME. Delayed prices – when you want free realtime prices your best bet are CFD shops like this one.

iDealing complains about DeGiro

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Insider trading for beginners

15 comments / October 28, 2016

Agfa Gevaert CompuGroupAgfa-Gevaert is a multinational company in Belgium. It’s mainly active in imaging technology for hospitals (wiki). After the market close, Bloomberg brought the news the CompuServe Group is preparing a take-over bid.

Mergers and acquisitions are business as usual. With option positions, some traders lose and others win. While take-over bids are often accompanied with a smell of inside trading, it’s hard to come up with evidence.

But the closer you get to the mediterranean sea, the stronger the rumors.

Insider trading in Belgium

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No growth for Binck and DeGiro

5 comments / October 25, 2016

DeGiro commercialMonday was the day of the Dutch retail brokers. Binck was about to release their third quarter earnings. Their friends at DeGiro steal the opportunity to grab the spotlight and get free publicity. Successful.

DeGiro reported three numbers. The number of accounts, the number of transactions and the profit for the firm. They compare the first nine months with the same period last year. I take a look at quarter on quarter. That’s less impressive.

Accounts, not trades

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Shareholders want to sell TOM

15 comments / October 21, 2016

TOM MTF soldDutch alternative derivative exchange TOM is for sale. The shareholders agreed to sell the business. It wasn’t a well-kept secret. The rumour has been making rounds for a few weeks. Hans Pieterse is appointed with a mandate to sell it. It’s an interesting case (press release).

Too many captains

There are a lot of shareholders. First, there’s retail broker Binck. From the clearing side, there’s ABN AMRO Clearing. Market makers Optiver and IMC Financial Markets have a stake. Finally, there’s NASDAQ  as technology provider. NASDAQ has an option to buy 50,1% of TOM. The former CEO Willem Meijer still owns 1,1%. Each shareholder on the ship has their own strategic priorities.

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