SGX to buy FX trading platform MaxxTrader for US$125m

SINGAPORE Exchange S68 (SGX) will acquire single-source and direct-to-market FX trading platform MaxxTrader, for a cash consideration of US$125 million, the bourse operator said in a filing on Friday.

The acquisition is part of SGX's plans to build an integrated FX ecosystem and marketplace facilitating global access to over-the-counter (OTC) trading and on-exchange currency derivatives.

Excluding one-off transaction costs, SGX said the acquisition should be accretive to adjusted earnings per share for year one.

It added that MaxxTrader, which has an average daily volume of over US$17 billion, has a "strong sell-side client base" that complements the buy-side clientele of BidFX. The latter is a cloud-based provider of electronic FX trading solutions SGX acquired last year.

Chief executive of SGX Loh Boon Chye said: "Our next step is to offer clients a full suite of FX futures and OTC solutions, by building a primary FX OTC marketplace anchored in Singapore.

"In turn, this would accelerate our vision to create fungible and convenient access for diverse, global customers to different pools of liquidity under one integrated platform on SGX, and build Asia's largest one-stop venue for international FX OTC and futures participants."

SGX expects the acquisition, from multi-asset execution and order management systems provider FlexTrade Systems, to be completed by December 2021.

The purchase price takes into consideration forecasted financial projections and is subject to certain adjustments. Up to US$35 million may also be paid to FlexTrade Systems if certain revenue targets for calendar years 2021 and 2022 are met by MaxxTrader.

Shares of SGX closed at S$11.79 on Thursday, up S$0.19 or 1.6 per cent.