The Singapore Exchange (SGX) has announced that it will acquire MaxxTrader for US$125 million in cash ($169.9 million).
MaxxTrader, which is headquartered in Singapore, is part of FlexTrade Systems, a global leader in multi-asset execution and order management systems.
MaxxTrader is a leading provider of foreign exchange (FX) pricing and risk solutions for sell side institutions such as banks and broker-dealers, as well as a multi-dealer platform for hedge funds.
SGX says the acquisition is expected to be completed by December 2021.
According to SGX, MaxxTrader will accelerate its plan to build an integrated FX ecosystem and marketplace that facilitates global access to over the counter (OTC) and on-exchange currency derivatives.
MaxxTrader’s strong sell-side client base, it adds, will complement the buy-side clientele of BidFX, a cloud-based provider of electronic FX trading solutions which SGX acquired last year.
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SGX says MaxxTrader has built a strong, global client and dealer franchise since the latter’s incorporation in 2008.
MaxxTrader has 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, points out SGX.
“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,” SGX CEO Loh Boon Chye says in a July 23 statement.
SGX ended yesterday at $11.79, up 19 cents or 1.6%, with 3.2 million shares changed hands.
