Nordic Growth Market Gets Connected

Terry Flanagan

Nordic Growth Market (NGM), a Swedish exchange, is expanding its reach to a wider trading community after signing deals with both TMX Atrium and Neonet.

Its deal with TMX Atrium, a Luxembourg-headquartered trading and technology firm owned by Canadian exchange TMX Group, will increase equity and derivatives trading options for customers of TMX.

“This allows us to quickly and easily enhance the depth and range of Nordic markets and add NGM as a result of the increasing client demand we are seeing across our infrastructure,” said Emmanuel Carjat, managing director of TMX Atrium. In March, TMX added the Burgundy multilateral trading facility, another Nordic venue, to its low-latency network after laying a cable between London and Stockholm last year for its high-speed trading clients to better access the Nordic markets.

Peter Peleback, chief executive of NGM, said: “Our aim is to become the leading Nordic exchange for private investors; joining the TMX Atrium community ensures that the 5,000 financial instruments listed at NGM will be even more widely accessible for both Scandinavian-based and non-Scandinavian-based trading participants.”

NGM, owned by the Börse Stuttgart, Germany’s leading exchange for retail clients, offers listing and trading of various instruments such as equities and derivatives and operates in the Swedish, Finnish and Norwegian markets while it is eyeing expansion into Denmark. It is operated under the supervision of the Swedish Financial Supervisory Authority and runs the largest securitized derivatives market in the Nordic region.

TMX Atrium has built a network that connects investors with key market infrastructure, such as exchanges, clearing houses, central securities depositories and data suppliers. It connects 25 trading venues–including NYSE Euronext, Nasdaq OMX, CME Group and Chi-X Europe–and 300 end data points. The low latency provider has benefited from the rise of algorithmic trading and the fragmentation of global markets by offering its clients access to many markets through its co-location services and high bandwidths.

NGM’s deal with Neonet, meanwhile, allows the Swedish trading and technology company to connect to both the NGM and the Nordic Derivatives Exchange (NDX).

Neonet, which offers services to the sell side, is pushing into new trading venues and supporting more complex financial instruments, in order to meet the diverse requirements of its brokerage clients.

“To strengthen Neonet’s tailored execution service provider offering, we will continue to add access to new markets and support trading across a wider range of investment products and asset classes,” said Carl Johan Wallin, global head of sales at Neonet.

“From listening to our sell side clients and learning about their needs, we have concluded that they want Neonet to provide more than execution services on primary and alternative equities markets, and with access to NGM/NDX our reach in the Nordics is greatly enhanced.”

Peleback at Nordic Growth Market added: “The announcement of Neonet as a member is very encouraging.”

Neonet now provides the ability for its clients to trade the investment products offered by NGM/NDX. This includes mini futures, warrants, turbo warrants and knockout warrants.

“We appreciate Neonet’s approach and commitment to support each market, trading venue and the various asset classes that we want to trade,” said Patrick Anderson, chief executive of Helsinki-based investment bank United Bankers. “As a specialized broker focused on Nordic markets, the addition of NGM to Neonet’s service is a valuable addition that reduces complexity and helps make our operations more efficient.”

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