OMX puts greater focus on fixed income trading

The recent years’ structural growth in fixed income markets has increased demand for clearing and electronic trading as well as for higher levels of transparency. In response, OMX will organize fixed income related products and services under a single unit as of 1 January 2008. The aim is to broaden OMX’s presence in expanding fixed income markets.

“Fixed income markets are an example of an important part of the financial market that often falls outside the traditional exchanges. OMX has previously delivered technology solutions to electronic fixed income markets, and we operate a growing Nordic fixed income market. A certain measure of OMX’s strategy is to reach beyond traditional equity markets, whether it might be commodities, fixed income or foreign exchange,” says Magnus Böcker, VD OMX.

The international fixed income market is currently undergoing major structural change. Electronic trading is increasing parallel with rising turnover in government securities as well as credit bonds. In addition, recent turbulence on financial markets underlines the need for transparency and central counterparty clearing. In 2007, the average volume of fixed income derivatives cleared by OMX daily is approximately SEK 100 billion, compared to around SEK 30 billion three years ago.

“Recent structural growth has increased the demand for central counterparty clearing and electronic trading combined with rising demand for transparency on the world’s fixed income markets. By strengthening our organization, OMX creates stronger possibilities to develop the fixed income markets,” says Jukka Ruuska, President of Nordic Marketplaces at OMX.

OMX products and services meet all these demands, and the greater focus on fixed income trading will further improve opportunities for growth. Until September 2007, OMX revenues from fixed income related products and services were approximately SEK 225 million.

Erik Thedéen, currently head of Public Affairs at OMX, has been appointed head of the new fixed income organization.