Intercontinental Exchange (ICE) has acquired American electronic exchange for direct lending and borrowing, the American Financial Exchange (AFX).
ICE has acquired 100% of the venue from 7RIDGE. Further details of the transaction have not been disclosed but ICE confirmed that the acquisition is not expected to have a material impact on its 2025 financial results or its deleveraging and capital return plans.
ICE said the acquisition was a natural fit given its developments in the mortgage technology sphere, including the development of its network of mortgage assets for the management of the US mortgage life cycle.
This network was created to deliver ICE’s mission to lower mortgage costs for lenders and borrowers through digitising the mortgage workflow ecosystem.
“Complementing our leading global index business and our best-in-class mortgage technology network, AFX is a natural fit to ICE,” said Christopher Edmonds, president of ICE fixed income and data services.
“AFX’s focus on regional, mid-size, community and minority-owned banks covers many of the same customers ICE serves through our mortgage technology network. We look forward to continuing to serve this important market, delivering innovation and new product development made possible through the addition of AFX to our portfolio.”
AFX operates the American Interbank Offered Rate (AMERIBOR) which is set daily based on unsecured interbank loans executed on the AFX platform, producing an interest rate which reflects banks’ actual unsecured borrowing costs.
“AFX becoming part of ICE marks an extraordinary opportunity for AFX and we are confident that ICE’s leadership will amplify AFX’s success and its purpose to serve regional and local American banks by creating a transparent, robust and efficient interbank lending ecosystem,” added Carsten Kengeter, chief executive at 7RIDGE.