Singapore Exchange (SGX) said that it will take full ownership of London-based trading platform BidFX by acquiring the remaining 80% stake it previously didn’t own for about $128m.
BidFX is a cloud-based provider of electronic foreign exchange (FX) e-trading solutions for the global financial marketplace. SGX acquired a stake of 20% in the trading platform for $25m in March 2019 with a goal to bring together foreign exchange futures with the over-the-counter (OTC) markets.
The Singaporean firm said that the latest transaction will expand its reach beyond foreign exchange futures and the OTC market. SGX is an international multi-asset exchange and foreign exchange derivatives marketplace.
The Singaporean firm said that the synergies with BidFX, combined with the scope to support international foreign exchange participants from pre-trade data and analytics, trade execution to post-trade clearing, propelled it to acquire the remaining stake.
Furthermore, the combination of SGX and BidFX’s expertise, client and distribution network, and products is expected to scale up the successes of both the companies in the foreign exchange space and advance the former’s global ambitions to provide end-to-end foreign platform and solutions.
SGX CEO comments on acquiring the remaining 80% stake in BidFX
SGX CEO Loh Boon Chye said: “The future of FX lies in the ability for market participants to benefit from price discovery, liquidity and transparency for both OTC and listed futures trading, in a single unified venue. BidFX is ahead of the curve in developing sophisticated electronic FX trading and workflow solutions.
“With BidFX as part of the SGX Group, we can now serve a wider FX community with more comprehensive solutions and enhanced distribution capabilities, while bringing together the two growing and mutually-reinforcing pools of liquidity.”
BidFX was launched by US-based financial technology provider TradingScreen in 2017.
TradingScreen CEO Pierre Schroeder said: “We’ve purposefully focused our efforts and resources on our best opportunities for growth and this has led to exceptional results, such as the BidFX sale being announced today. TradingScreen clients will continue to have access to BidFX via its multi-asset TradeSmart application.”
Subject to the meeting of certain preceding conditions, the transaction is expected to be completed next month.
