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Singapore Exchange acquires MaxxTrader in a $125 million deal



Singapore Exchange (SGX), has revealed it is further extending its reach into the FX OTC space by fully acquiring MaxxTrader, a single source and direct-to-market FX trading platform.

The deal with FlexTrade Systems, the owner of MaxxTrader, will be for the amount of US $125 million. The transaction is expected to complete by the end of the year. The exchange expects the acquisition to accelerate its plans to establish an integrated FX ecosystem and marketplace that enables global access to OTC and on-exchange currency derivatives.

Loh Boon Chye, Chief Executive Officer, SGX, commented:

Loh Boon Chye, CEO of SGX
Loh Boon Chye
Source: LinkedIn

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.

MaxxTrader is a provider of FX pricing and risk solutions for sell-side institutions such as banks and broker-dealers, as well as a multi-dealer platform for hedge funds. Headquartered in Singapore and established in 2008, the company has set up a strong, global client and dealer franchise with more than 100 global banks, regional banks, broker-dealers and hedge funds currently connected to its platform. During this time, MaxxTrader’s average daily volume (ADV) has reached over US$17 billion.

acquisition

Manish Kedia, designated Chief Executive Officer, MaxxTrader, said:

Manish Kedia, FlexTrade
Manish Kedia
Source: LinkedIn

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.

MaxxTrader’s sell-side client base complements the buy-side clientele of BidFX, which SGX acquired last year. The two acquisitions together form part of SGX’s strategy to build an integrated Asian FX marketplace for global investors.

Mr. Loh concluded:

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. 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.

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Singapore Exchange acquires MaxxTrader in a $125 million deal

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