TRADING VENUES

Deutsche Boerse ploughs $10m into Trumid bond venture

Latest investment in corporate bond trading specialist made via exchange operator's venture capital arm.

By John Bakie john.bakie@strategic-i.com July 11, 2017 9:17 AM GMT

Deutsche Boerse has invested $10 million in corporate bond trading network Trumid as part of a strategic cooperation deal.

The stake adds to a previous $28 million funding round, with Trumid using the funding to enhance its technology offering which is focused on electronic trading of bonds.

As part of the deal, both firms will work closely to develop products and services for the European marketplace.

Hauke Stars, Deutsche Boerse executive board member and head of cash markets, said: “Trumid has already proven its ability to create a new transparent, electronic and efficient credit and bond market place in the US With our investment we will gain new insight into this rapidly evolving market; and therefore we will find further ways to collaborate.”

The investment in Trumid by Deutsche Boerse will be managed by its DB1 Ventures arm and has been chosen as it offers bond trading with a buy-side focus.

Trumid is headquartered in New York and offers electronic credit trading on its platform, enabling buy- and sell-side participants to transact directly and anonymously.

This is not the first investment in fixed income made by Deutsche Boerse. In 2014 it took a minority stake in all-to-all trading platform Bondcube, though that platform later shut down due to a lack of trading activity.