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SGX to acquire remaining stake in BidFX
Posted on Tuesday, 30 June 2020 07:39
Singapore Exchange (SGX) has agreed to pick up the remaining 80.0 per cent stake in trading platform BidFX for a cash payment of USD 128.00 million.

The acquisition is expected to boost momentum to establish the buyer as a one-stop venue for international foreign exchange (FX) over-the-counter (OTC) and futures participants.

As part of its multi-asset strategy to build FX into another core pillar of growth, SGX first acquired a 20.0 per cent in BidFX in March 2019, with the aim of bringing together FX futures with OTC markets.

The savings between the two companies, together with the opportunity to support international participants from pre-trade data and analytics, trade execution to post-trade cleaning, which encouraged the company to purchase the remaining stake.

Completion is expected to take place next month.

BidFX claims to be a leading cloud-based FX trading platform for institutional investors and has seen record trading volumes in recent quarters.

Since being founded in 2017, average daily volumes have grown at a compound annual growth rate (CAGR) of 57.0 per cent to USD 31.00 million in May 2020.

BidFX continues to acquire new clients, with over 100 of the world’s largest banks, hedge funds and asset managers currently connected to its platform.

The FX market is the largest financial market in the world, with average daily turnover in the OTC market amounting to USD 6,600 billion by traded volume.

BidFX was previously a subsidiary of TradingScreen, which has been incubating BidFX and spun it off in 2017.

SGX’s FX futures franchise continues to grow from strength to strength, with USD 3,800 billion in traded volumes since it started in November 2013.

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 50 deals targeting securities and commodities exchange companies announced worldwide in 2020 to date.

In the largest of these, INTL FCStone agreed to buy online FX trader Gain Capital Holdings for USD 236.00 million.

Other companies included Hong Kong Exchanges and Clearing, Nasdaq, CME Group and Cboe Global Markets.

© Zephus Ltd