To reflect the sharpened focus on marketplaces, OMX will also realign its technology organization. In connection with this, Markus Gerdien, currently Executive Vice President Markets & Business Development at Observer, will take over as President of OMX Technology.
Today, OMX’s technology business targeting banks and brokerage firms provides software and business services that make securities processing more efficient. The securities processing business requires scale to accelerate creation of new technology and to better meet customers’ needs. There is currently a need for consolidation within the industry and OMX has decided to take an active part in this by announcing its plan to divest its Banks & Brokers business area to other industry partners.
Discussions with prospective partners are ongoing and an agreement is expected to be signed during the fall. Until then, OMX will provide service and support to current customers as today. The discontinuance of the Banks & Brokers business area is expected to have an annual impact of approximately SEK 350 million on OMX’s revenue and to improve operating profit on an annual basis by approximately SEK 60 million, based on the levels of operations of the second quarter 2005.
Today’s initiatives are not expected to result in any immediate redundancies at OMX.
“We expect a transaction with an industry partner to create economies of scale for customers and increase the efficiency of the securities transactions infrastructure, especially in the Nordic region. Finding an industry partner already active in the business will enable us to secure continuity for customers and to safeguard the skills and expertise we have developed in this area. At the same time, we will focus on future growth in the marketplace segment, possibly through complementary acquisitions,” said Magnus Böcker, President and CEO of OMX.
The reorganization of the technology business includes replacing the current business area matrix organization with a functional organization. During the fall, Markus Gerdien will take over from Klas Ståhl as President of OMX Technology. Markus Gerdien is currently Executive Vice President, Market and Business Development at Observer and was previously President of Front Capital Systems.
“Klas Ståhl has headed the technology division during a phase of restructuring. This phase is now completed and a change of leadership is natural. I would therefore like to extend my thanks to Klas for his contributions over the years. I would also like to take the opportunity to welcome Markus Gerdien on board. His background from both the industry and international sales makes him particularly well suited to lead the company forward,” Magnus Böcker continued.
“I am really happy and excited to join OMX. I believe that my more than 13 years of experience from the IT and finance industry and my background from international sales and marketing, will help lead the technology division further,” said Markus Gerdien.
