BrokerTec, NEX Group (LON:NXG)’s global electronic fixed income trading platform, announced today that it has agreed to acquire a controlling majority stake in e-MID SIM SpA “e-MID”, the first Italian electronic central limit order book (CLOB) platform for interbank deposits and Overnight Indexed Swaps (OIS).
The transaction is subject to certain conditions, including most importantly the approval of the Bank of Italy. Subject to receipt of the approval of the Bank of Italy, BrokerTec expects the transaction to complete in the next few months.
Upon completion of the transaction, e-MID will become a subsidiary of BrokerTec Europe Ltd and the company’s management will report to John Edwards, Managing Director of BrokerTec Europe Ltd. Following the acquisition, e-MID will look to offer its Italian Government Bond Repo and interbank Deposit businesses to BrokerTec‘s extensive, international client base. BrokerTec will integrate the e-MID technology provided by List SpA into its technology architecture and offer e-MID additional Euro zone Repo and Government Bond products.
In time, BrokerTec will look to establish a money market offering for Italian corporates, leveraging the EBS BrokerTec brand and combined business operations to connect e-MID with EBS Treasury, its money market fund (MMF) platform for the corporate community. It is also envisaged that there are other areas of opportunity and overlap for EBS BrokerTec and NEX Optimisation, a NEX Group business which helps clients reduce complexity and optimise resources across the transaction lifecycle.
Seth Johnson, Chief Executive Officer, EBS BrokerTec, said:
The acquisition of e-MID is strategically important to the BrokerTec business as we look to expand into the Italian financial markets. Their technology and products are complementary to those of BrokerTec and I’m confident that they will positively contribute to EBS BrokerTec’s overall strategy of providing a truly multi-product offering to an expanded global client base.
John Edwards, Managing Director, BrokerTec Europe Ltd, added:
e-MID are an extremely important company within the Italian banking ecosystem with a very strong reputation in the fixed income markets. Contingent on final approvals, we look forward to working with them to share our mutual technology and product offerings and become a true partner to the Italian fixed income markets.
Giuseppe Attana, Chairman, e-MID, concluded:
The acquisition by BrokerTec Europe will allow e-MID to become part of the NEX Group which has a worldwide footprint providing us with a great opportunity to relaunch our Company and market which is key for the efficiency of the Italian financial market