Industry Updates

IMC halts equities and ETF trading in Europe

Tom Eckett

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Dutch market maker IMC has made the decision to close its equities and ETF trading business in Europe.

The firm said the decision was in line with “IMC’s strategy to focus on core activities and growth opportunities”.

IMC will continue to trade options in Europe and ETFs in APAC and the US, where it is the designated market maker on the New York Stock Exchange.

According to sources close to the matter, the ETF and European equities side of the business was not currently profitable however steps were currently being taken to change this.

Margins in the ETF trading space have been squeezed in recent years following the introduction of MiFID II in January 2018 and a sustained period of low volatility.

Amid this environment, there has been a spike in M&A activity with Virtu Financial completing the acquisition of ITG for $1bn in March and GTS purchasing Cantor Fitzgerald’s market making business in May.

IMC was founded in 1989 in Amsterdam and today makes markets on more than 100 regulated trading venues across Europe, the US and Asia Pacific.

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