Nasdaq Injects Further Millions into NLX
Nasdaq has poured a further £6 million into its European derivatives venue NLX, bringing
its total share capital investment in the troubled initiative to £62 million.
Our Take: NDAQ continues to fund NLX despite cumulative losses of nearly £40 million
since its 2011 launch. NLX aims to challenge the dominance of Liffe and Eurex in interest
rate derivatives, by offering copycats of their combined interest-rate futures contracts on
a single platform, with significant fee incentives. But trading activity has been tepid thus
far. NDAQ appears to be pinning its hopes for NLX on cross-margining between NLX’s
interest-rate futures and related OTC swaps cleared by LSE’s LCH.Clearnet unit. But this
service isn’t expected to be in place until mid-2016 — around the same time that LSE
plans to launch its own rates-futures market, CurveGlobal.
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