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Marex Spectron expands product range with acquisition of XFA execution broker



Global commodities specialist Marex Spectron announced the acquisition of X-Change Financial Access (XFA), a fast-growing exchange-traded derivatives (ETD) execution broker. The transaction, which is expected to close on 13 November, expands the Marex Spectron product range, further strengthens its North American presence and builds on its global clearing infrastructure and it will provide XFA clients with ready access to complementary products and services.

XFA is headquartered in Chicago with offices in New York and San Francisco. The company is an agency-only broker in benchmark global products, including equity options (S&P 500 Index Options, Volatility Index Options, Equity and Exchange-Traded Funds, and Flex-Based execution), futures and futures options (including S&P 500 Index, Eurodollar, Treasury and commodities).

Founded in 2001, XFA offers a broad range of services, such as agency trade execution, market information and strategy, 24-hour global futures execution and direct market access (DMA). Its international client list includes banks, inter-dealer brokers, hedge funds, commodity trading advisors and market makers.

In S&P 500 Index Options (SPX), XFA accounted for more than 50% of all volumes in the first three quarters of 2019. It is also consistently ranked in the top two firms, by volume, in Volatility Index Options (VIX).

The acquisition will add over 100 XFA trading and support professionals, who will continue to be led by the management team made up of Founder and Senior Managing Partner Tim Hendricks and Managing Partners Peter Scheffler and William Ellington.

Acquisition

Ian Lowitt, Chief Executive of Marex Spectron, commented:

Ian Lowitt, Marex Spectron
Ian Lowitt
Spurce: LinkedIn

XFA is a very exciting addition to our business. This acquisition will be an important building block in our plans to expand in North America, which is our fastest growing region. XFA is an exceptional fit, adding new products to our service offering.  The acquisition creates opportunities to cross-sell our products, including clearing services, and Marex can support XFA’s geographic expansion. XFA has a very impressive track record built on its extensive market experience, with an excellent brand and dominant share across multiple products. We are adding a great team, serving a sophisticated and demanding client base, with outstanding trading and support, and highly experienced and effective management.

Senior Managing Partner Tim Hendricks added:

Joining Marex Spectron is an important step in the evolution of XFA, as we expand our offerings and accelerate our growth out of North America.  Marex Spectron is a fast-growing, ambitious firm, with similar ideals to our own, which makes this all the more exciting.  Bill, Peter and I are thrilled to be joining the Marex team as there are tremendous opportunities for our business.  Our management team and brokers look forward to joining a firm that understands the complexities of our industry and the importance of evolving to meet clients’ needs in an ever-changing environment.  We will continue to provide our clients with ‘best execution,’ coupled with Marex Spectron’s product and service suite, affording XFA exciting growth opportunities.

When the acquisition is finalized, XFA will be part of Marex Spectron’s fast-growing North American franchise and will report to Ram Vittal, CEO, Marex North America.  Marex North America include Rosenthal Collins Group and the recently acquired Matthews Group, alongside incumbent Marex Spectron metals, energy and agricultural brokerage teams in Chicago, New York, Houston, Connecticut, Calgary and Montreal. North America makes up approximately a third of the firm’s gross revenues.

Advantages to XFA from the acquisition include:

  • Growing its international footprint through a more expansive global client network
  • Offering its clients a broader range of services and products
  • Leveraging Marex Spectron’s balance sheet and investment-grade rating

Marex Spectron will benefit from:

  • Accelerated growth of its franchise in North America
  • Broader product offerings and cross-selling opportunities, particularly in equity ETDs
  • Expanded global clearing infrastructure

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Marex Spectron expands product range with acquisition of XFA execution broker

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