OMX
From MarketsWiki
| OMX | |
| |
| Founded | 1985 |
|---|---|
| Headquarters | Stockholm, Sweden |
| Key People | Hans-Ole Jochumsen, CEO; Kristina Schauman, CFO; Markus Gerdien, president, market technology; Jukka Ruuska, president OMX Nordic Exchange; |
| Products | Cash equities, derivatives and exchange technology |
| Web site | http://omxgroup.com/omxcorp/ |
OMX AB is the holding company for multiple electronic exchanges in Scandinavia offering cash equities and derivatives trading, clearing and settlement. The group is also one of the largest technology providers in the financial services sector, offering trading platforms used by more than 60 customers in 50 countries. Hans-Ole Jochumsen was appointed CEO of OMX AB on Apr. 23, 2008 and began his new position the same day.[1] He replaced Magnus Böcker as CEO.
OMX is scheduled to be acquired through a joint bid by Nasdaq and Borse Dubai in the first quarter of 2008. The agreed deal followed a three-way bidding war involving the US exchange, the Dubai investment group and the Qatar Investment Authority, which later dropped out. The new entity will be known as Nasdaq OMX.
On Jan. 31, 2008, the Swedish government agreed to sell its 6.6-percent share in the Nordic and Baltic stock exchange operator OMX to Emirates-based Borse Dubai, and subsequently to Nasdaq.[2]
The NASDAQ OMX Group, Inc. is the world’s largest exchange company. It delivers trading, exchange technology and public company services across six continents, and with over 3,900 companies. It is number one in worldwide listings among major markets.
NASDAQ OMX offers multiple capital raising solutions to companies around the globe, including its U.S. listings market; the OMX Nordic Exchange, including First North; and the 144A PORTAL Market. The company offers trading across multiple asset classes including equities, derivatives, debt, commodities, structured products and ETFs. NASDAQ OMX technology supports the operations of over 60 exchanges, clearing organizations and central securities depositories in more than 50 countries.
OMX Nordic Exchange is not a legal entity but describes the common offering from Nasdaq OMX exchanges in Helsinki, Copenhagen, Stockholm, Iceland, Tallinn, Riga, and Vilnius.[3]
Contents |
History
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The company was launched in 1985 as OM (Options Mäklare) in June 1985, offering index options on what was Sweden’s first options exchange – the Stockholm Stock Exchange was barred from derivatives trading at the time. The venture was backed by backed by Carnegie and Alfred Berg, two stockbroking firms, and Investor and Providentia, the Wallenberg Investment companies. OM listed on the Stockholm Stock Exchange in 1987 and merged with the exchange in 1998, with a joint trading platform initiative started on all the Nordic exchanges the same year.
The OM moved from regional consolidation towards a step-change its platform with an unsolicited offer for the London Stock Exchange on Aug. 25, 2000, which was rejected by the LSE together with a hostile £822m offer - £7 in cash plus £20 in new OM shares per LSE share - made on Aug. 29. The move derailed the planned merger of the LSE and Deutsche Borse to form the iX exchange, but holders of only 6.7 percent of LSE shares accepted OM's cash and shares offer by Nov. 10, and the bid lapsed.
The regional consolidation restarted through the 2003 merger with the Helsinki Exchange (HEX) – which included the Tallinn exchange in Estonia and the Riga exchange in Latvia - to form OMX. The Vilnius Stock Exchange was added in 2004 – when the regional trading platform plan was completed – followed by the 2005 merger with the Copenhagen Stock Exchange and the launch in 2006 of the OMX Nordic Exchange.
The Battle for OMX
Nasdaq launched an agreed bid for OMX in May 2007, before Borse Dubai announced on Aug. 9, 2007 that it had acquired a 4.9 percent stake in OMX at SKr230 a share, with options to acquire a further 22.5 percent at the same price. An all-cash offer at SKr230 a share was launched on Aug. 11 2007, valuing the company at SKr27.7 billion. The offer was challenged by Swedish regulators and faced competition from a rival bid from the Qatar Investment Authority.
On Sept. 20, 2007, Borse Dubai announced a joint offer for the OMX with the Nasdaq. Under this deal, Borse Dubai will buy OMX for SKr265 a share and then hand it to Nasdaq in return for 19.9 per cent of the new company and Nasdaq's 28 percent stake in the London Stock Exchange. The US group would take a stake in the DIFX. The acquisition is expected to be approved by OMX's shareholders in the first quarter of next year.
Borse Dubai would have a planned 19.99 percent holding in Nasdaq OMX would include a 5 percent ceiling on voting rights.
Structure and Business Model
OMX has three business units. Nordic Marketplaces includes exchanges in Stockholm, Helsinki, Copenhagen and Iceland, as well as the First North alternative market launched in 2006, and accounted for 48 percent of group revenues in that year.
The equities platform ranks as the fifth-largest in Europe, while the derivatives platform traded 137 million contracts in 2006.
The Market Technology division contributed 35 percent of sales in 2006, providing trading and settlement platforms to customers including X and Y. The Information Services and New Markets provided 17 percent of revenues.
Resources
For more information about NASDAQ OMX, visit www.nasdaqomx.com.
References
- ↑ Press Release. Mondo Visione. Retrieved on April 24, 2008.
- ↑ "Stockholm agrees to sell Nordic exchange to Borse Dubai/Nasdaq,” 1/31/08. Yahoo!News. Retrieved on Jan. 31, 2008.
- ↑ Press Release. OMXGroup. Retrieved on April 24, 2008.
