Singapore Exchange (SGX) has agreed to acquire direct-to-market foreign exchange trading platform MaxxTrader for US$125 million, further extending its reach into the FX over-the-counter (OTC) space.
Already Asia’s largest FX derivatives marketplace, SGX says the full acquisition of MaxxTrader from FlexTrade Systems, a global leader in multi-asset execution and order management systems, will accelerate its plan to build an integrated FX ecosystem and marketplace that facilitates global access to OTC and on-exchange currency derivatives. The deal, subject to customary conditions, is expected to be completed by December 2021.
Headquartered in Singapore, MaxxTrader is a leading provider of FX pricing and risk solutions for sellside 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 has grown to over US$17 billion.
MaxxTrader’s strong sellside client base complements the buyside 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.
SGX chief executive officer Loh Boon Chye says: “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.”