DriehoekjesThe force of the pyramids strikes Amsterdam. Euronext Liffe will list options on OCI NV, an Egyptian company active in the production of fertilizers and the construction business. To my surprise this company, with current headquarters in Geleen, employs 75.000 people worldwide.

Not tiny small cap, it’s a component of the AMX index and next year it will likely be included in the AEX index. Market cap is over 6 billion euros, but 57% of the shares are held by the Egyptian Sawiri family. OCI stands for Orascom Construction Industries, and I’m not sure why they left the Cairo exchange for Amsterdam. Can imagine you will get fed up with the tear gas every day.

New selection procedure

The selection procedure for market makers (here) has been changed. Instead of an auction for the tightest quotes, the spreads are defined by Euronext Liffe. Take it or leave it. All Options and Caerus/Webb will quote it, perhaps with 323 and Scrocca.

According to UBS, after this December expiration two new stocks will join the AMX index. Accell Group and Grontmij – expect options on these stocks soon.

Update

Thanks to @margefreek I noticed these OCI shares may be a little different from other less liquid shares. Turnover is extremely tiny with today less than 10k traded. Next to the Egyptian family, another major investor is Bill Gates. Bid ask spread in the stock is medieval. Don’t rule out the possibility no market maker will sign for quoting these options.

Jack
Jack