The first internet-based trading platform for European equity derivatives is being launched this month. It will offer a dramatically cheaper and more efficient alternative to the traditional voice-broking market. It could save firms using equity derivatives up to 90% of what they currently pay to execute trades using the telephone.

The platform, TradeKap.com, has been developed over the past year by a niche voice broker - Kappa Financial Services - which already admits that the service will cannibalise its existing business.