BrokerTec secures majority stake in Italian CLOB platform

NEX Group’s electronic fixed income trading platform BrokerTec has agreed to acquire a controlling stake in e-MID.

BrokerTec has agreed to acquire a controlling majority stake in e-MID, the first Italian electronic central limit order book (CLOB) platform for interbank deposits and overnight indexed swaps (OIS).

The transaction is subject to certain conditions, including the approval of the Bank of Italy.

Subject to receipt of the approval of the Bank of Italy, BrokerTec expects the transaction to complete in the next few months.

Upon completion of the transaction, e-MID will become a subsidiary of BrokerTec Europe and the company’s management will report to John Edwards, managing director of BrokerTec Europe.

Following the acquisition, e-MID will also look to offer its Italian government bond repo and interbank deposit businesses to BrokerTec‘s international client base.

BrokerTec will integrate the e-MID technology provided by List SpA into its technology architecture and offer e-MID additional Eurozone repo and government bond products.

BrokerTec will also look to establish a money market offering for Italian corporates, leveraging the EBS BrokerTec brand and combined business operations to connect e-MID with EBS treasury, its money market fund (MMF) platform for the corporate community.

It is also envisaged that there are other areas of opportunity and overlap for EBS BrokerTec and NEX Optimisation, a NEX Group business which helps clients reduce complexity and optimise resources across the transaction lifecycle.

“The acquisition of e-MID is strategically important to the BrokerTec business as we look to expand into the Italian financial markets,” said Seth Johnson, CEO at EBS BrokerTec.

“Their technology and products are complementary to those of BrokerTec and I’m confident that they will positively contribute to EBS BrokerTec’s overall strategy of providing a truly multi-product offering to an expanded global client base,” said Johnson.  

“Contingent on final approvals, we look forward to working with them to share our mutual technology and product offerings and become a true partner to the Italian fixed income markets.”

“The acquisition by BrokerTec Europe will allow e-MID to become part of the NEX Group which has a worldwide footprint providing us with a great opportunity to relaunch our company and market which is key for the efficiency of the Italian financial market,” said Giuseppe Attana, Chairman at e-MID.