EDX London Ltd, a derivatives trading platform owned by London Stock Exchange and OMX, offers trading and clearing in Scandinavian equity derivatives as well as over-the-counter equity derivatives services in London.
In November 2005, the LSE reported an impairment loss of GBP 22 million, connected to a trade April – September of 10.1 million contracts, mainly related to Scandinavian equity derivatives. The loss was followed by an announcement by OMX that the development of services for the over-the-counter equity derivatives justified no further investment.
During the fourth quarter 2005 this impairment loss had a negative impact on the OMX, which owns 24% of the platform, resulting in a loss of SEK 21 million and is booked under participation in earnings of associated companies.