Swedish trading technology company OM is to cut 60 jobs and Skr150 million in costs after a second-quarter slump in exchange-based trading savaged its half-yearly income statement.
Due mainly to lower market values, low levels of activity in equity trading and fee reductions on the Stockholm Bourse, which OM operates, trading revenue slumped by 27 per cent during the first half. Overall revenues were up 13 per cent, boosted by a strong performance in the technology division which recorded exchange and clearing systems sales to Borsa Italia, Hong Kong Exchanges and the American Stock Exchange.
Om's operating expenses climbed significantly during the first half (Skr1626 million against Skr975 million in the previous year), largely due to operational growth in the technology division and investments in Jiway, the poorly-performing pan-European retail stock exchange established in conjunction with Morgan Stanley.
The company said it will eliminate 60 jobs in its technology unit to help cut costs. OM currently employs 1,575 people, approximately two-thirds of whom work within technology.