Van der Moolen

Van der Moolen NV.
Type Public
Industry Financial services
Founded Amsterdam, The Netherlands (1892)
Headquarters Schiphol, Amsterdam, The Netherlands
Products Trading
Revenue EUR110.8 million (2007)
Net income EUR 77.7 million (2007)
Total equity

US $1040 million (2007)

[1]
Employees 440
Website www.vandermoolen.com

Van der Moolen was a Dutch equity trading firm, with its headquarters located in Amsterdam.[2] They were mainly active in the United States and in Europe, particularly in the Netherlands, France, Germany, Switzerland and the United Kingdom.[3]

Originally known as Van der Moolen & Co., it was founded in July 1892 as a 'jobber' or 'hoekman' which traded in equities and bonds. The company started its expansion in the derivatives markets in the late 1970s. Van der Moolen became a limited liability company in December 1986 and soon afterwards was listed on the Amsterdam Stock Exchange (AEX). The company’s shares were also listed on the New York Stock Exchange ('NYSE') in October 2001.[4]

In 2001, Van der Moolen launched VDM Bonds to provide fixed income liquidity in less-than-wholesale transaction sizes to banks and other intermediaries. [5] VDM Bonds[6] was sold to Zions Bancorporation in March 2004 after its management team left the company.[7][8][9] In January 2006, VDM acquired Curvalue, a Dutch trading company specialized in derivative trading.[10]

On the New York Stock Exchange, Van der Moolen served as specialist until 2007 when it sold the activities to Lehman Brothers.[11] At one point, Van der Moolen USA’s specialist book had represented 15% of the NYSE listed common stocks and accounted 11% of the NYSE's volume.[12] Regulatory changes which slashed margins for market makers and allowed a flood of new competition for trading volume significantly impaired the profitability of this VDM unit.[13] Previously in 2003, Van der Moolen Specialists became subject to an investigation by the SEC on allegations of front running. In 2004, Van der Moolen reached a settlement with the SEC and paid a fine of $57.7 million. Some employees were convicted of fraud, while others (Robert Scavone Jr.) were later acquitted.[14][15]

On August 10, 2009, Van der Moolen requested protection from its creditors a short time after opening its new headquarters near Amsterdam airport.[16] On September 10, 2009, Van der Moolen filed for bankruptcy.[17] The company assets in the Netherlands were liquidated in January 2010 with an auction raising Euro 400,000[18] against creditor claims for Euro 28.3 million.[19] Van der Moolen's dealings are being investigated by the Dutch market regulator AFM.[20]

As of 23 December 2010, Van der Moolen shares were no longer listed on the Euronext Amsterdam exchange.[21][22][23]

According to an report dated 13 May 2011 by the Enterprise Chamber of the Amsterdam Appeals Court, prior to bankruptcy Van der Moolen's management didn’t seem in control of the company's dividend-arbitrage activities, and attention to capital management and external financing was limited. The Dutch investor group VEB and insurer ASR Nederland NV had asked the Enterprise Chamber to investigate the firm’s management. VEB now can ask the court to assert mismanagement, which may lead to damage claims.[24][25]

External links

References

  1. ^ http://investing.businessweek.com/businessweek/research/stocks/financials/financials.asp?symbol=VDMN.AS&dataset=balanceSheet&period=A&currency=native Businessweek
  2. ^ http://www.reuters.com/article/rbssFinancialServicesAndRealEstateNews/idUSL913470820090909] Van der Moolen expects to be granted bankruptcy Friday Wed Sep 9, 2009
  3. ^ http://www.allbusiness.com/banking-finance/financial-markets-investing/5732416-1.html Company Profile for Van der Moolen Holding NV, June 27 2003
  4. ^ Van der Moolen Holding NV Annual Report 2006 (Ernst & Young), p. 8 available on http://xbrl.rienks.biz/company/annualreport/Van_der_Moolen_Holding_N.V./2006, accessed 15 Dec 2009
  5. ^ Van der Moolen, Odd-Lot Trading With a Very Experienced Team in Capital Markets Magazine of Q2 2001 available on http://www.speedwell.net/PDF/FIMR%20Q2%20Van%20Der%20Moolen.pdf
  6. ^ Mayer, Brown, Rowe & Maw LLP advises Van Der Moolen on sale of bonds trading subsidiary http://www.mayerbrown.com/news/article.asp?id=1367&nid=19
  7. ^ Van der Moolen Signs Agreement To Sell VDM UK Bonds, Business Wire, Jan. 7, 2004, available on http://www.thefreelibrary.com/Van+der+Moolen+Signs+Agreement+To+Sell+VDM+UK+Bonds.-a0111915613, accessed on 20 December 2010
  8. ^ team profile details team move to ABN AMRO accessed 10 May 2011 http://uk.linkedin.com/in/davidperkins
  9. ^ Tullett raids ABN's e-commerce team FXWeek.com http://www.fxweek.com/fx-week/news/1547724/tullett-raids-abn-commerce-team of 30 Jul 2007 accessed 10 May 2011 available on http://www.fxweek.com/fx-week/news/1547724/tullett-raids-abn-commerce-team
  10. ^ Van der Moolen Holding NV Annual Report 2006 (Ernst & Young), p.8 available on http://xbrl.rienks.biz/company/annualreport/Van_der_Moolen_Holding_N.V./2006, accessed 15 Dec 2009
  11. ^ Lehman Swipes Up Van der Moolen Specialist Ops, 247wallst.com, December 4, 2007
  12. ^ Van der Moolen Holding N.V., SECURITIES AND EXCHANGE COMMISSION FORM 6-K, December 2001, available on http://www.secinfo.com/dsvr4.4fH3g.htm, accessed 30 Dec 2010
  13. ^ http://online.wsj.com/article/SB10001424052748703730704576066150740357660.html?mod=googlenews_wsj Goldman's NYSE Floor Operations Struggle as Market Changes Wall Street Journal Accessed 11 January 2011
  14. ^ CORRECTED - Ex-NYSE trader sentenced to 6 months for fraud, Reuters.com, Jan 19, 2007
  15. ^ http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aK6c.yz0sdXU Ex-Van der Moolen Specialists Win Conviction Reversal Bloomberg.com, July 30, 2008
  16. ^ http://www.reuters.com/article/idUSLA20171320090810 Van der Moolen granted creditor protection, Reuters.com, Mon Aug 10, 2009
  17. ^ http://www.reuters.com/article/idUSL913470820090909 Dutch Van der Moolen declares bankruptcy Reuters.com, Wed Sep 9, 2009 5:57 pm
  18. ^ Van der Moolen’s garage sale, AmsterdamTrader.com, available on http://www.amsterdamtrader.com/2010/02/van-der-moolens-garage-sale-2.html, accessed 30 December 2010
  19. ^ Van der Moolen to Auction Statuettes, Cars in Bankruptcy Sale, Bloomberg Businessweek,January 05, 2010, available on http://www.businessweek.com/news/2010-01-05/van-der-moolen-to-auction-statuettes-cars-in-bankruptcy-sale.html, accessed on 30 December 2010
  20. ^ http://www.reuters.com/article/idUSLDE66417X20100705 Dutch court orders Van der Moolen investigation, Reuters.com, Mon Jul 5, 2010
  21. ^ http://www.euronext.com/landing/listedSecurities-12650-EN.html Euronext Listings
  22. ^ http://www.amsterdamtrader.com/2009/10/whodunit-at-vdm-2.html Whodunit at VDM, Oct 9,2009
  23. ^ http://www.rtl.nl/(/financien/rtlz/nieuws/)/components/financien/rtlz/2010/weken_2010/51/1223_1630_Aandeel_Van_der_Moolen_officieel_verleden_tijd.xml Aandeel Van der Moolen officieel verleden tijd rtz.nl 23-12-2010
  24. ^ "Van Der Moolen Governance Was Flawed Before Bankruptcy, Dutch Probe Says", Maud van Gaal and Fred Pals, Bloomberg Accessed May 17, 2011 http://www.bloomberg.com/news/2011-05-17/van-der-moolen-governance-was-flawed-before-bankruptcy-dutch-probe-says.html
  25. ^ Enterprise Chamber of the Amsterdam Appeals Court Report on Van der Moolen N.V. Bankruptcy of 13 May 2011 copy accessed on 16 July 2011 available on http://www.docstoc.com/docs/85292721/Verslag-van-bevindingen-total-Van-Der-Moolen-Holding-NV