Droste effect op de beursA kind of meta story. The stock Euronext has been listed on the exchange Euronext for a few weeks now. On August 28th there will be options introduced on the stocks Euronext, on the Euronext derivative market. (AN14-011)

Euronext options (code : ENX) will be a part of the new “spotlight” segment. Currently there are six spotlight option classes : Telegraaf, Altice, BESI, Accell, Sligro and Exact. Rebates, profit sharing and promotional actions with brokers ; only one market maker is interested in quoting these options. Susquehanna (SIG) quotes everything.

Euronext seems to forget they need the liquidity providers. Without market makers there’s no market. Check the options on Kas Bank (no, they don’t exist). Even SIG wasn’t interested to make a market in Kas Bank options (Euronext Notice AN14-007).

No OCI options at Binck

These days Euronext is depending on brokers willing to allow their customers to trade in new products. Remember the Egyptian options from OCI? This stock is a constituent of the AEX index. TOM doesn’t consider the options on OCI very interesting. No OCI options on TOM.

Fair enough, but this means clients of Binck/Alex are blocked altogether from trading OCI options. I’ve checked with Binck why I can’t trade OCI options with them.

There’s not much demand for OCI options, and they are too expensive for us.

Guess they weren’t referring to the implied volatilities in OCI. Binck and Alex make more profit executing retail trades on TOM than Euronext. Retail investors with Binck/Alex can only trade options available on TOM.

Trolling Euronext

TOM could troll Euronext to the max by not copying the Euronext options to their market. This way the majority of the Dutch investors would be cut off from trading Euronext options (because Binck and Alex can’t trade directly on Euronext derivatives anymore). Binck isn’t interested in retail investors, so they wouldn’t object.

Imagine Euronext suing TOM for not having Euronext options. Would be interesting.