EDX Impairment Leads To SEK 21 Million-Loss for OMX

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

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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.

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