SGX acquires MaxxTrader in push for dominant space in FX OTC

Karthik Subramanian

SGX, one of the largest multi-asset and FX derivatives marketplaces in Asia, has announced that it has acquired MaxxTrader to expand its reach into the FX Over The Counter (OTC) markets.

sgx

MaxxTrader is a direct-to-market FX trading platform that is being used by many companies like Equiti for enhancing their prime brokerage offering and it has been fully acquired for a cash consideration of around $125 million. The acquisition is expected to be completed by December of this year and will help SGX to build a complete FX ecosystem that has global access to OTC and a large derivatives marketplace.

Loh Boon Chye, Chief Executive Officer, SGX, said, “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 also headquartered in Singapore and has grown into a strong provider of FX pricing and risk solutions for a variety of clients including banks. Its strong growth over the years has helped it to reach an average daily volume of over $17 billion. SGX had acquired BidFX last year and while that company focuses on the buy-side liquidity, it would complement the sell-side liquidity that MaxxTrader provides for its institutional clients.

Manish Kedia, designated Chief Executive Officer, MaxxTrader, said, “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 continuing contributing to the success of Singapore as a central liquidity hub in Asia.”

SGX plans to offer a full suite of FX futures and OTC solutions based out of Singapore to make the region the center of liquidity as far as Asia is concerned and wants to become a one-stop solution for global FX OTC and futures participants.

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