OMX extends agreement with Kaupthing Bank

OMX Technology today announced that it will assume responsibility for the development of certain parts of Kaupthing Bank’s processing software. This is an extension of an existing agreement, under which OMX Technology will provide a new pan-Nordic solution for back-office operations. The extended agreement further supports Kaupthing Bank efforts to make securities processing more efficient and also establishes an OMX presence in Iceland, creating a platform to support the growth of the Icelandic financial services industry. The development covered by this agreement is currently managed by Libra, a subsidiary of TM Software, which specializes in developing software for the financial market in Iceland. The agreement includes plans for all Libra assets, customers and 30 employees to be transferred to OMX Technology. In addition to Kaupthing Bank, Libra currently has more than 20 customers in Iceland, and a range of software applications for securities processing, pension and loan management. Through OMX all Libra customers will have the opportunity to benefit from added service and development expertise as well as an extended solution portfolio. The Icelandic market and the long term partnership with Kaupthing Bank are key components in OMX’s efforts to secure prospective partners for its technology business targeting banks and brokerage firms. The securities processing business requires scale to accelerate the creation of new technology and to better meet customers’ needs. In August, OMX announced that it planned to take an active part in the ongoing consolidation within the industry by sharpening its focus on marketplaces and divesting the part of its technology business targeted to banks and brokerages. Discussions are ongoing and are expected to be finalized before year end.