Nasdaq OMX and multi-asset clearinghouse, LCH.Clearnet, have received regulatory approval for the launch of NLX, a new London-based interest rate derivatives trading platform.
The New York-based equity exchange operator’s NLX platform will offer short-term interest (STIRs) and long-term interest rate (LTIRs) euro and sterling-denominated listed derivative products on a single market that will clear through LCH.Clearnet.
NLX will launch with the trading of futures products in three-month Euribor, three-month sterling, Long Gilt, two-year Schatz, five-year Bobl, and 10-year Bund, says the firm.
Charlotte Crosswell, chief executive officer of NLX, says, “We have worked closely with the regulators in our application process and would like to thank them for their efforts and support to create this new market. NLX has collaborated with the market to develop a unique proposition that brings much needed competition to European interest rate derivatives.
“We look forward to launching a market that provides ease of access, efficiency and the flexibility to respond to customer demand and list new products rapidly.”
Alberto Pravettoni, CEO of LCH.Clearnet’s repo and exchanges business says, “We are delighted with this milestone, which further demonstrates the regulatory drive for an open, transparent and competitive market place. We look forward to working with NLX to bring innovative risk management solutions to the European interest rate derivatives market.”
The platform competes with NYSE Euronext and Deutsche Boerse. NYSE Euronext’s London-based Liffe dominates the market for short-term interest-rate products and Frankfurt-based Eurex, Europe’s largest futures exchange and owned by Deutsche Boerse, handles long-term products.
The company has been working on the new platform since last summer, as reported in Squawkbox (24 June 2012).