Lijkt wel GoldmanDeGiro is hard to ignore. Every other day in the news in their conquest of new markets and connecting to exchanges.

Latest news is they aim for a takeover of a part of Banco de Madrid. The Spanish bank is in trouble after a bank run and the brokerage part, Interdin, is owned by the bank. Watchdog CNMW is guarding the unit. Clients can’t open new positions. Thing is DeGiro isn’t aiming for a full acquisition.

DeGiro won’t pay one peseta for Interdin. Offices, employees, brand name : not interested at all. The company logo reminds me of some US financial institution. Only the clients are welcome at DeGiro’s systems. After all they need to move somewhere. Interdin will be closing shop.

DeGiro to connect to TOM

Back to the Netherlands. After the trouble with TOM’s not-so-Smart Order Router end of last year, this may come as a surprise. But as it’s strictly a business decision, DeGiro will connect to TOM’s option market.

Wasn’t DeGiro in bed with Euronext? Yes, they are. But connecting to TOM isn’t the final blow to Euronext I assumed it to be. They will connect only to the market, not to the TOM  order router. Clients will have the choice to execute their orders on TOM or Euronext. Just like Interactive Brokers has connected to TOM.

The quotes on TOM are at best the same as the quotes on Euronext. Same spread, same size. As long as there isn’t any benefit in terms of lower fees most orders will be send to Euronext. Why connect to TOM in the first place? TOM can in theory have a better price in the market when there’s a retail limit order in front of the book. When DeGiro connects with TOM, their retail investors can trade against Binck’s retail investors.  It will take a while.

ESMA on Automated Trading

Not sure how many trades between retail investors happen on the option exchange anyway. Guess at least 90% will trade against market makers. According to this new ESMA pdf some 60% of the Dutch stock and option market is done electronically.  Can’t find a definition, other than a claim it’s an estimate.

If anybody is able to read the ESMA document and reads anything interesting, please tell me. Experienced it as a very, very boring read. Only thing I read in the document is Europe is a very fragmented place. Don’t need 70 pages to come to such a conclusion.