Dutch trading venue The Order Machine (TOM) has added exchange-traded funds (ETFs) to the list of products traded on the platform, alongside equities and options.
In a statement, the multilateral trading facility said this would give the buy-side in Europe greater scope to meet best execution requirements under the MiFID regulatory framework. The TOM platform is also linked to a proprietary smart order router that lets users compare prices in instruments between markets at low latency to ensure the best price is achieved.
Willem Meijer, CEO of TOM, said the platform would seek to expand the number of ETFs able to execute on the venue.
“We are continuously looking for possibilities to expand our product offering and are therefore very pleased to add ETFs to our range of tradable instruments,” he said. “We plan to expand the number of ETFs tradable via TOM in the near future as the market has seen significant growth in this asset class.”
ETFs have grown in popularity in recent years as a low-cost instrument offering a number of different exposures compared to holding underlying stock.
TOM said the rise of ETFs was beneficial to the end-investor and that the ability to ensure best execution would encourage a greater number of investors to seek out these products.