Pan-European exchange Euronext has acquired an electronic communications network firm in the spot FX market for $153 million, in a bid to expand into global FX markets.
FastMatch was established in 2012 by Credit Suisse and FXCM and currently provides access to large pools of spot FX liquidity to banks, non-bank market makers, broker-dealers, asset managers and hedge funds.
Since its launch, its market share has more than doubled and its average daily volume increased by 52% in 2016.
The acquisition is part of Euronext’s ‘Agility for Growth’ strategy to ‘capture value accretive opportunities’ and expand the diversification of its revenue base line.
Stéphane Boujnah, CEO at Euronext, explained the deal will broaden the exchange operator’s product offering and create long-term growth for its customers and shareholders.
“The combination of FastMatch’s in-depth FX expertise, leading technology platform, diverse customer base and entrepreneurial spirit with Euronext’s scale, strength and credibility, will position Euronext as a trustworthy infrastructure provider,” he said.
Dmitri Galinov, founder and CEO of FastMatch, added that with Euronext “we will accelerate our vision of bringing transparency, best-in-class technology and execution to FX markets globally.”
FastMatch will remain committed to the development of the business with a 10% interest and the deal is expected to close in the third quarter this year.
It is subject to regulatory, anti-trust authority and customer approval.