30 November 2015


Justin Schack

Managing Director    

Anish Puaar


Rosenblatt Securities Inc.    
New York +1 212 607 3100    

Rosenblatt's Market Structure News Digest

Nasdaq Injects Further Millions into NLX
—Financial News

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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