- US$125 million acquisition further strengthens FX as a core pillar of growth under SGX’s multi-asset strategy
- Together with wholly-owned subsidiary, BidFX, the acquisition paves the way for SGX to build an integrated and scalable FX platform that will become Asia’s largest one-stop venue for international FX OTC and futures participants
Singapore Exchange (SGX), Asia’s most international multi-asset exchange and largest foreign exchange (FX) derivatives marketplace, today announced it is further extending its reach into the FX over-the-counter (OTC) space by fully acquiring the single source and direct-to-market FX trading platform, MaxxTrader.
SGX will acquire MaxxTrader from FlexTrade Systems, a global leader in multi-asset execution and order management systems, for a cash consideration[1] of approximately US$125 million. The acquisition[2] is expected to be completed by December 2021 and will accelerate SGX’s plan to build an integrated FX ecosystem and marketplace that facilitates global access to OTC and on-exchange currency derivatives.
Headquartered in Singapore, MaxxTrader is a leading provider of FX pricing and risk solutions for sell-side institutions including banks and broker-dealers, as well as a multi-dealer platform for hedge funds. Since the company’s incorporation in 2008, MaxxTrader has built a strong, global client and dealer franchise with over 100 global banks, regional banks, broker-dealers and hedge funds currently connected to its platform. Its average daily volume (ADV) has also grown during this time to over US$17 billion[3].
MaxxTrader’s strong sell-side client base complements the buy-side clientele of BidFX, a leading cloud-based provider of electronic FX trading solutions which SGX acquired last year. Together, these acquisitions form part of SGX’s multi-phase strategy in building an integrated Asian FX marketplace for global investors.
Loh Boon Chye, Chief Executive Officer, SGX, said, “Since SGX expanded from FX futures to the global FX OTC market, we continue to cement our footprint in this fast-growing and sizeable US$6.6 trillion-a day global market. We are excited to acquire MaxxTrader, which further enhances our FX OTC offering and widens our customer base across the sell- and buy-side.”
Manish Kedia, designated Chief Executive Officer, MaxxTrader, said, “We share SGX’s FX vision to offer buy-side and sell-side clients a wide range of FX products and liquidity across OTC and futures globally. With SGX’s strong focus and investments in FX, we expect to accelerate innovation and deliver exciting new solutions for both our clients and liquidity providers. Moreover, as one of the first platforms to host banks, brokers, and hedge funds in Singapore’s SG1 Liquidity Hub, we also look forward to continue contributing to the success of Singapore as a central liquidity hub in Asia.”
Vijay Kedia, President and CEO of FlexTrade Systems, added, “It has been a true pleasure to see the success and growth of MaxxTrader over the past decade. SGX is committed to invest and innovate in the FX OTC marketplace which will benefit the MaxxTrader product, employees and client base, and enhance the momentum of the business. This transaction enables FlexTrade to singularly focus on its core business: the FlexTrade multi-asset EMS and OEMS for buy- and sell-side institutions through FlexTRADER, FlexONE, FlexFX, FlexFI, FlexOMS, ColorPalette, and Mottai as it continues to make strides and gain market share through product innovation and leadership.”
“Our next step is to offer clients a full suite of FX futures and OTC solutions, by building a primary FX OTC marketplace anchored in Singapore. In turn, this would accelerate our vision to create fungible and convenient access for diverse, global customers to different pools of liquidity under one integrated platform on SGX, and build Asia’s largest one-stop venue for international FX OTC and futures participants,” concluded Mr. Loh.
[1] See appended notes on the Consideration
[2] The completion of the acquisition is subject to customary conditions (including absence of breach of representations, warranties and covenants) being met
[3] As at June 2021
Notes on the consideration:
The consideration, which is subject to certain adjustments, is arrived at on an arm’s length willing-seller-willing-buyer basis after taking into account management’s forecast financial projections. An aggregate amount of up to US$35 million may be paid to the sellers if certain revenue targets for calendar years 2021 and 2022 are met by MaxxTrader.
