SuperDerivatives, Nasdaq NLX Tap TMX Atrium for Connectivity

Derivatives pricing, data and risk management software vendor SuperDerivatives has enlisted TMX Atrium, the network subsidiary of Canadian exchange group TMX, to provide connectivity to support the delivery of market data between Nasdaq OMX's London-based NLX derivatives market and SuperDerivatives, which recently began calculating independent daily settlement prices for illiquid instruments trading on NLX.

TMX Atrium is providing the managed virtual private network that SuperDerivatives uses to connect to a real-time datafeed of trading activity from NLX, which the vendor then combines with similar trades from the over-the-counter markets to create an average settlement price weighted according to how much trading is executed on-exchange. The vendor is also leveraging the same connectivity to send the weighted settlement prices back to NLX, which then publishes them to market participants.

SuperDerivatives currently provides daily settlement prices for NLX's full range of short-term interest rate and long-term interest rate euro- and pounds sterling-denominated listed futures, and will begin calculating daily settlement prices for the exchange's options market when it goes live later this quarter.

The connectivity has been live for a number of months in London and in production facilities in New Jersey, and was instrumental in all the market data tests prior to NLX receiving its license to operate, says TMX Atrium managing director Emmanuel Carjat, adding that the vendor is now working with SuperDerivatives on a number of undisclosed other opportunities.

"Given the launch objective of NLX and the time pressure they were under, what we did was provide the infrastructure and ability for NLX and SuperDerivatives to connect rapidly," which was a key factor in picking TMX Atrium, which was able to roll out the connectivity in less than a week, Carjat says.