NASDAQ OMX to Close European Trading Facility

The Nasdaq OMX Group Inc. said it will close its European multilateral trading facility, saying competition held growth of the operation below expectations.

The U.S. stock information and exchange company said the last day of trading on Nasdaq OMX Europe is expected to be May 21.

"Despite our best efforts, the increasingly competitive nature of the MTF space in Europe has meant that the growth of the business hasn't reached levels necessary for us to realize our stated objectives," said executive vice president Eric Noll.

Nasdaq OMX has expanded by acquiring stock exchanges in Boston and Philadelphia. Nasdaq OMX Europe was launched in late 2008 with about 600 listed European stocks.

Neuro, as it was called, competes against rivals such as Turquoise, which is backed by investment banking heavyweights, and Chi-X. Multilateral trading facilities allow equity trading on primary European exchanges such as London and Frankfurt.

Nasdaq OMX said it will keep a presence in London, where it has data centers. It said customers of the pan-European trading facility will be moved to its operations in Scandinavia and the Baltics.