NYSE Euronext has taken a 25% stake in low-latency service provider Fixnetix as part of efforts to build up its commercial technology business NYSE Technologies.
The deal, which has been accepted by 90% of Fixnetix shareholders, includes an option for the US-based exchange group to acquire the remainder of Fixnetix at any time over the next three years.
NYSE Euronext will use the acquisition to boost the global reach of NYSE Technologies, by offering its services alongside Fixnetix’s low latency market data and trading infrastructure services. NYSE Technologies has recently set up global liquidity centres in Toronto and Tokyo, adding to existing facilities in the US and Europe.
“This strategic shareholder interest in Fixnetix aligns with our mission to build a global capital markets community supported by world-class technology, broad connectivity and diverse customer participation that yields greater liquidity and market innovation,” said Stanley Young, CEO of NYSE Technologies. “With our collective experience in delivering customer-driven technology solutions that facilitate global multi-asset trading, we will create an even more compelling value proposition for market participants trading anywhere in the world.”
The companies will continue to operate independently, but will collaborate in offering customers integrated market access in Europe, the Americas and Asia.
The acquisition of the stake signals a new strategic direction for NYSE Euronext following the collapse of its proposed merger with Deutsche Börse at the start of this month. Speaking after the collapse of the merger, Duncan Niederauer, NYSE Euronext CEO highlighted technology initiatives as a future area for growth.
NYSE Technologies has also completed the migration of Oman's Muscat Securities Market to its NSC V900 trading platform.
“The NSC V900 trading platform complements our business strategy to further increase liquidity in our capital markets by simplifying and enhancing our infrastructure,” said MSM director general Ahmed Salh Al-Marhoon.