SINGAPORE (March 27): As part of its efforts to strengthen its multi-asset exchange strategy, the Singapore Exchange has acquired a 20% stake in BidFX for US$25 million ($33.8 miillion) in cash.
BidFX is a cloud-based provider of electronic foreign exchange trading platform.
It offers a cloud-based, front-end trading platform that supports FX spot, swaps and forwards for G10 and Asian currencies.
The platform caters to hedge funds, traditional asset managers and regional banks – helping them trade, improve access to liquidity, generate alpha and simplify workflows.
SGX CEO Loh Boon Chye says the acquisition will allow SGX to offer its Asian FX futures products alongside the OTC FX products on BidFX’s platform.
This enables SGX to offer a broader proposition to its financial market participants, he says.
“This is a strategic investment as part of our strategy to grow the core pillars across the various asset classes,” he tells a media briefing earlier today.
SGX has the option for additional shares to gain a controlling interest of BidFX.
Loh says SGX may exercise the option beyond the “next two-to-three years”. But for now, BidFX will become an associate company of SGX and Loh will sit on its board.
BidFX was previously a division of TradingScreen, a provider of a multi-asset execution and order management system. It was spun off into a subsidiary in 2017.
Jean-Philippe Malé, CEO of BidFX, says the platform currently has 250 end user across Singapore, London and New York.
He notes that BidFX recorded “double digit” growth in revenue to US$8.4 million for the financial year ended Dec 31, 2018.
Malé says BidFX has plans to expand into Hong Kong, Sydney and Tokyo.
