Singapore Exchange, (SGX) is to acquire the 80% of OEMS provider BidFX that is does not already own. The exchange initially bought a 20% stake in March 2019 and has now taken the entire company in a deal valued at $128 million.
The deal, which is expected to complete in July 2020, was the result SGX says, of “the synergies between SGX and BidFX, coupled with the opportunity to support international FX participants from pre-trade data and analytics, trade execution to post-trade clearing”. SGX also reveals that BidFX handled average daily volume of $31 billion in May 2020.
“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,” says Loh Boon Chye, chief executive officer of SGX. “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.”
Jean-Philippe Malé, CEO of BidFX, adds, “We will be, amongst other plans, expanding our coverage to include FX futures, which gives sophisticated investors a hedge to access the broader market across OTC and futures liquidity pools. As we continue to grow, we look forward to contributing to Singapore’s success as a central FX liquidity hub in Asia.”