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e-Mid Added to the Nex Group

BrokerTec,
Nex Group’s electronic fixed income trading platform, has agreed to acquire a
controlling majority stake in e-Mid, the Italian electronic central limit order
book (CLOB) for interbank deposits and Overnight Indexed Swaps (OIS).

The
transaction is subject to certain conditions, including the approval of the
Bank of Italy, the firm says that subject to receipt of this approval it
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 client base and BrokerTec will
integrate the e-Mid technology, provided by List, into its technology
architecture and offer e-Mid additional Eurozone repo and government bond
products.

In time,
BrokerTec says it 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 platform for the
corporate community.

It says it
also envisages that there are other areas of opportunity and overlap for EBS
BrokerTec and Nex Optimisation, a group business which helps clients reduce
complexity and optimise resources across the transaction lifecycle.

“The acquisition
of e-Mid is strategically important to the BrokerTec business as we look to
expand into the Italian financial markets,” says Seth Johnson, chief executive
officer, EBS BrokerTec. “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.”

Edwards
adds, “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 of e-Mid, says, “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.”

Colin_lambert@profit-loss.com

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Colin Lambert

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