NASDAQ OMX will close its European multi-lateral trading platform, Neuro, next month after the exchange group cited weak prospects for the business due to a competitive market.
The move comes just 18 months after Nasdaq launched the European arm and said that an additional problem with the system was that it wasn’t owned by a bank.
“Despite our best efforts, the increasingly competitive nature of the multi-lateral trading facility space in Europe has meant that the growth of the business hasn’t reached levels necessary for us to realise our stated objectives,” said executive vice president Eric Noll.
The decision to shut down Neuro will be met with some internal changes as the group has appointed Hans-Ole Jochumsen, president of Nasdaq OMX Nordic, to assume responsibility for Pan-European equity trading.
Jochumsen said: “Our approach will be very targeted, market-by-market. For example, NASDAQ OMX Nordic is currently the largest competitor to Oslo Bors, with nearly five per cent market share.”
Meanwhile, Charlotte Crosswell will continue with her business development initiatives in London and across Europe but will also oversee client transition from Neuro to Nasdaq OMX Nordic.
The company said that it remained committed to London and will continue to have a presence in the capital.
The group said that 40 per cent of its Nordic business is derived from London based clients and through its office and existing data centres in London. The group said it will continue to support its trading and market data operations.
It said that it will continue to run the UK power exchange, N2EX, and support its international listings business.
Last day of trading on Neuro is expected to be 21 May.
Nasdaq is one of the world’s largest trading companies and serves 3,600 listed companies.