Trading solutions provider NYFIX has agreed to buy FIXCITY, a specialist in web-based electronic trading and liquidity discovery solutions.
FIXCITY’s flagship product, ioinet, provides indication of interest (IOI) analysis, filtering and altering capabilities and is already used by 120 firms. This will be combined with NYFIX’s IOI workflow expertise to deliver a liquidity discovery solution, which the firms hope will enable clients to capitalise on trading opportunities.
“One of the things NYFIX does not currently provide is a lot of the analytical information and alerting, as an application that sits on top of the messaging service,” Howard Edelstein, CEO of NYFIX, told thetradenews.com. “In contrast, FIXCITY has done a really good job at understanding their clients’ needs, so that they can provide the information that helps them to direct and focus IOIs.”
Edelstein also believes that the acquisition would go ‘hand-in-glove’ with the recent launch of their neutral dark pool Euro Millennium. “They are both liquidity aggregators and our organisation is going to be geared up so that they can exploit the benefits to both buy and sell side alike,” he says.
The companies believe their joint offering will increase the depth of global IOI content and allow their buy-side clients to understand how deep, accurate and meaningful their IOIs are.
For the sell-side, NYFIX believes the combined solution will help them to target their IOIs more specifically so they are not just sending out mass broadcasts.
Bob Moitoso, global head of the FIX division at NYFIX, said in a statement: “While NYFIX focused on delivering high quality IOIs directly into the buy-side trader’s order management system for workflow efficiencies, FIXCITY approached it from a front-end analytical perspective. The reality is that clients want both – integration into their workflows as well as visibility and control.”