SGX Extends FX OTC Reach with MaxxTrader Buy
Posted by Colin Lambert. Last updated: July 23, 2021
Singapore Exchange (SGX) has further extended its reach into the FX OTC space by fully acquiring the single source and direct-to-market FX trading platform, MaxxTrader from FlexTrade for approximately $125 million in cash.
The acquisition is expected to be completed by December 2021 and SGX says it will accelerate its plan to build an integrated FX ecosystem and marketplace that facilitates global access to OTC and on-exchange currency derivatives.
Headquartered in Singapore, SGX says MaxxTrader has a client and dealer franchise with over 100 global banks, regional banks, broker-dealers and hedge funds currently connected to its platform and that its average daily volume has also grown during this time to over US$17 billion.
The acquisition builds upon that of BidFX, which was bought by SGX in 2020, together, SGX says, the acquisitions form part of its multi-phase strategy in building an integrated Asian FX marketplace for global investors.
“Since SGX expanded from FX futures to the global FX OTC market, we continue to cement our footprint in this fast-growing and sizeable $6.6 trillion-a day global market,” says Loh Boon Chye, chief executive officer, SGX. “MaxxTrader further enhances our FX OTC offering and widens our customer base across the sell- and buy-side.
“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,” he continues. “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.”
Manish Kedia, designated chief executive officer, MaxxTrader, adds, “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.”
As for FlexTrade, Vijay Kedia, president and CEO of the firm says the deal enables the firm to “singularly focus on its core business”.