NASDAQ OMX NLX (NLX) has secured the backing of a range of banks, clearing, brokerage and trading firms ahead of its launch this week.
The firms will contribute to the provision of liquidity and open interest at NLX, which is a new London market offering short-term interest rate and long-term interest rate euro- and sterling-denominated listed derivatives products.
Banks and clearing firms include BNP Paribas, Citi, GH Financials and UBS.
Meanwhile, Getco Europe, Marex Financial and Tower Trading Group are among the founding lineup for brokerage and trading firms.
Commenting on the launch of NLX, Mike du Plessis, global co-head of ETB agency execution at UBS, said: "NLX brings competition to interest rate derivatives in Europe and the ability to trade and clear a selection of contracts on one low cost market, which have traditionally traded and cleared on two separate platforms. With new regulations coming into force globally, we are keen that market infrastructure evolves to help our clients adapt in the most efficient way."
NLX is positioning itself as a low-cost market, but is also looking to offer the flexibility and infrastructure to rapidly respond to incoming regulation from EMIR, MiFID II, Dodd-Frank and Basel III.
Charlotte Crosswell, CEO of NLX, said: "We are keen to support our clients and their customers with solutions that create greater efficiency and opportunities in their trading and clearing activities."
NLX will offer trading in futures in three-month Euribor, three-month Sterling, long gilt, two-year Schatz, five-year Bobl and ten-year Bund on a single market.