Exclusive: Institutional FX platform FastMatch saw Revenue of just €1.57 million monthly post Euronext acquisition

B&S Group listed on Euronext Amsterdam

LeapRate Exclusive… Following our earlier report on the 2017 results of exchange operator Euronext NV (EPA:ENX), digging into the results LeapRate has learned that the company’s Forex ECN unit FastMatch – which Euronext bought in mid-2017 for $153 million – generated a total of €7.2 million of Revenue for the 4.6 months it was owned by Euronext during the year.

That works out to just €1.57 million of monthly Revenue, or an annualized €18.8 million (USD $23.3 million).

We had reported at the time the acquisition was announced (mid May, deal closed mid August) that FastMatch did $5.8 million of Revenue in Q1 of last year. Doing the math, it looks Revenue came in at about the same rate, $5.8 million per three-month period, after the acquisition as well.

That also means that Euronext paid a multiple of about 6.5x annual revenues to buy FastMatch. That’s quite a steep price, for a company with stagnant revenues, in a very commodity-like, uber-competitive sector such as institutional eFX.

FastMatch had been on the block for more than a year when Euronect bought it. The company was jointly owned by the FXCM unit of Global Brokerage Inc (OTCMKTS:GLBR), and by commercial banks Credit Suisse Group AG (ADR) (NYSE:CS) and BNY Mellon Corp (NYSE:BK).

Taking a longer term view, the average daily volume on the FastMatch spot foreign exchange market was $18.4 billion in 2017, up +44.7% compared to 2016. But as noted, the margins in institutional FX are razor thin.

By way of comparison with Retail FX, FastMatch generates about $1.9 million of monthly revenue, from total monthly volumes of about $404 billion. A retail FX broker doing that kind of volume is probably looking at monthly revenues in excess of $30 million. FXCM Group, which reports both Revenue and Volume figures, did $139.2 million of Revenues in the first nine months of 2017 (or about $15.5 million monthly), on average monthly volumes of $212 billion. Again, doing about half of the total volumes that FastMatch processes, FXCM brings in more than 8x the Revenues.

FastMatch FX volumes Jan2018


Related News


Exclusive: Institutional FX platform FastMatch saw Revenue of just €1.57 million monthly post Euronext acquisition


Send this to a friend

Subscribe to LeapRate
Fill out the form below for more information
for lising in LeapRate's Forex Yellow Pages

Please enter the company name, email address to reach you and phone # (optional):

Please fill out the message field to the right for any questions or special inquiry: