Euronext Continues Diversification Drive into Foreign Exchange with FastMatch Acquisition
Euronext to acquire 90 percent stake in spot FX trading network FastMatch as exchanges continue their move into investment bank domain
The acquisition of FastMatch for an initial cash consideration of $153 million is Euronext’s first entrance into the $5.1 trillion daily FX market, as the organization continues to diversify its product offering and technology investments as part of its “Agility for Growth” corporate strategy.
FastMatch, established in 2012 by Credit Suisse and Forex Capital Markets (FXCM), provides buy-side and sell-side clients with access to diversified FX liquidity pools through datacenters in London, New York and Tokyo. The acquisition, pending regulatory approval, is expected to close in Q3 2017 and FastMatch management will retain a 10 percent stake in the business.
“The acquisition of FastMatch breaks new ground for Euronext through expansion into the FX market, the world’s largest traded asset class,” said Stéphane Boujnah, CEO of Euronext. “This will broaden the spectrum of products we provide to capital market users, whilst meaningfully diversifying our revenue and creating long-term value and growth for customers and shareholders.”
Euronext has become the latest exchange operator to venture into the global FX marketplace, historically an area of dominance for investment banks, after Deutsche Börse splashed out €725 million ($796 million) on foreign-exchange platform 360T in October 2015, while Bats Global Markets acquired institutional spot FX market Hotspot from KCG Holdings for $365 million at the start of the same year.
Euronext is also in the process of establishing its second dark pool venue, a multilateral trading facility (MTF) for block trading in European equities, scheduled to launch in the middle of this year. Danielle Mensah, head of cash markets and deputy head of markets and global sales at Euronext, spoke to Waters earlier this year on how the MTF will “bridge the gap between human trading and electronic execution.”
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
Why can’t we be friends?
The ABA vs most every regulatory. LSEG vs BBG. AI vs SaaS. Buy vs build. Lots of drama in the capital markets.
DORA will change the buy vs. build debate… maybe
Waters Wrap: With DORA’s deadline looming, trading firms are having to reassess their long-term tech strategies. Anthony wonders if that means more building and less buying.
JSE rolls out exchange data to cloud Marketplace, built with DataBP
The move—part of a broader cloud migration at the exchange—allows financial firms to connect and subscribe to JSE news, market data, and analytics via the cloud.
The SEC needs a hand with artificial intelligence
The SEC wants to take a tough stance on AI, but it has a talent problem… or a marketing problem. Or both…
This Week: Appital adds to book-building tool; SmartStream; TS Imagine and more
A summary of the latest financial technology news.
This Week: Startup Skyfire launches payment network for AI agents; State Street; SteelEye and more
A summary of the latest financial technology news.
Waters Wavelength Podcast: Standard Chartered’s Brian O’Neill
Brian O’Neill from Standard Chartered joins the podcast to discuss cloud strategy, costs, and resiliency.
SS&C builds data mesh to unite acquired platforms
The vendor is using GenAI and APIs as part of the ongoing project.