The volumes increased in the period and October opened with continued high trading volumes.
Neonet reported higher operating revenues and earnings than in the second quarter. The number of active customers in brokerage operations and for Neonet XG products continued to increase to a new record-high level.
New European legislation (MiFID) and the current market trend increase the attractiveness of Neonet’s business model as a neutral and focused brokerage firm and technology supplier, without equity analysis, other financial services or trading on own account. The company has also shown that it has well-functioning structures and procedures for managing risk in the prevailing market climate.
Neonet has positioned its offering for the new financial landscape in which the number of competing markets is increasing. An important component of the client offering is “Best Execution”, which ensures that investors obtain the best price for every transaction in shares traded in several markets. The company’s newly launched Consolidated European Order Book brings together liquidity from all marketplaces, and through a new generation of smart-order routing technology “Best Execution” is guaranteed. Other new services include enhancements of the trading application and improved algorithms for trading on several marketplaces. During the period, the company began to offer trading on the new marketplaces Turquoise and NASDAQ OMX Europe. Neonet will also offer trading on BATS Europe.
Compared with the second quarter, the number of equity transactions increased by a full 18 percent, while the value of these trades increased by 5 percent. As a result of the increased competition between marketplaces, the trend is towards volume-based price lists. Although this will have a positive impact on Neonet’s costs, the effect remained limited during the third quarter, because alternative marketplaces still account for just a minor share of Neonet’s trading.
Neonet is well-positioned in the changing financial landscape with more marketplaces and greater demand for advanced technology. The prospects for Neonet are favorable, although the current market trend is having a negative impact. Demand is expected to increase for technology-based global trading and advanced trading tools.