Euronext, a pan-European stock exchange seated in Amsterdam, Brussels, London, Lisbon and Paris, announced its plans to enter the forex market through the acquisition of a 90% stake in the FastMatch electronic communications network (ECN). The other 10% will remain in the hands of FastMatch’s management, with minority rights.
As per the company announcement, the initial cash consideration for the 90% stake is for $153 million and the deal is a subject to anti-trust approval expected to occur in Q3 2017.
Established in 2012 by Credit Suisse and FXCM, FastMatch has secured a serious position in the ECN space. Since 2015 it has more than doubled its market share, growing Average Daily Volume (ADV) by 52% in 2016. In the same year, FastMatch also achieved technological and operational independence from Credit Suisse and FXCM.
In Q1 2017, FastMatch’s ADV grew by 61% Year-over-Year to $17.7 billion ADV in a relatively flat volume environment with significant market share gains.
Euronext notes that the deal will establish its presence in the forex segment.
“The acquisition of FastMatch breaks new ground for Euronext, through expansion into the FX market which is the world’s largest traded asset class. This will broaden the spectrum of products we provide to capital market users, whilst meaningfully diversifying our revenue and creating long-term value and growth for customers and shareholders”, said Stéphane Boujnah, Chairman and CEO of the Managing Board of Euronext NV.
Euronext is the largest stock exchange in Europe with 1,300 issuers representing a €3 trillion market capitalization. It offers sequities, exchange-traded funds, warrants and certificates, bonds, derivatives, commodities and indices.