Euronext Unveils AtomX Service for OTC Trading

AtomX will allow users to fully customize and trade both options and futures, each of which will be cleared through

Euronext has launched AtomX, its new service that caters to investors looking to bilaterally negotiate trades, according to a Euronext statement.

AtomX will allow users to fully customize and trade both options and futures, each of which will be cleared through LCH Clearnet, which constitutes the same clearing pool as the rest of Euronext derivatives positions. The launch comes amidst a push for more compliance and transparency in the clearing of over-the-counter (OTC) derivatives, notwithstanding the systematic risk associated with these instruments.

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Euronext’s new service also helps streamlines portfolio management by consolidating OTC trading and operations with regards to regulatory obligations – AtomX will also attempt to develop and foster additional on-exchange capabilities for users.

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Starting today, AtomX will be run on TRADExpress, a multi-asset technology platform that is utilized by high-volume trading venues worldwide via Cinnober. Furthermore, AtomX will be offering reporting of trades across upwards of 900 flex contracts on top of all standard financial derivatives contracts available in its central order book.

According to Adam Rose, Head of Financial Derivatives at Euronext, in a recent statement on the launch, “Clients are under significant pressure to find capital efficient solutions whilst maintaining much of the flexibility that OTC contracts provide in allowing them to meet their trading objectives. Through this service we can immediately offer efficiencies to clients trading bespoke equity derivatives contracts on our products. In addition we are also in discussions over new products that we can add to the service to bring more benefits to the marketplace.”

“As a global technology-enabled liquidity provider we are constantly looking for ways to make our index futures trading as efficient as possible within an ever changing environment. Therefore, we are pleased Euronext is introducing this service which enables us to combine the flexibility of OTC trading with the advantages of the regulated market,” added Christopher Meyers, Institutional Trading UK and Benelux of Flow Traders, in an accompanying statement.

Earlier this month, Euronext reported its volumes for the month ending September 2015, having seen its average daily Euronext cash order book fall to $9,025 million, representing a decline of -6.4% MoM from August 2015. Across a yearly timeframe however, the latest figures corresponded to a growth of 35.0% YoY from September 2014.

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