Interesting interview with The Order Machine’s CEO Willem Meijer this weekend in Het Parool. Although this newspaper is focused on Amsterdam, interviews like this would usually be published in Het Financiele Dagblad. Anyway, Meijer – with a new rebel look – has got something to say.
Things are going fine with TOM. The market share is increasing and next year Meijer expects to overtake Euronext in market share in the Dutch options. That may be a little too optimistic.
The market share in Daily AEX options has reached 40%. With a million contracts traded every month, TOM isn’t profitable yet. Meijer indirectly points at shareholder ABN AMRO, which still doesn’t route their order flow to TOM.
The infrastructure of TOM will move to London this month, and will be using a more advanced NASDAQ platform. It’s only a small step to expand abroad, and in 2014 TOM will open operations outside of The Netherlands. He mentions France, Belgium, England or Germany. It’s easy to launch new products, but the flow isn’t coming from thin air. Suppose TOM will try to get a partnership with foreign brokers, such as Interactive Brokers for starters.
While TOM will meet Euronext in court pretty soon, Meijer believes both exchanges should work together in the clearing and settlement. Just like in the USA. Would reduce costs for both of them, and there is an opportunity trades opened on TOM can be closed on Euronext. Or other way around.
Of course TOM is confident it will win the case against Euronext in court. Few years ago, Commerzbank won a similar case against Deutsche Börse. First hearing is scheduled on 3 June 2013.