MarketAxess, an operator of electronic trading (e-trading) platforms for US and European corporate bonds, emerging markets bonds and other types of fixed-income securities, is to buy the Xtrakter service from Euroclear for £26m. Xtrakter, which has only been owned by the clearing group for three years, provides financial market data, regulatory transaction reporting and trade matching services to the European securities markets.
Xtrakter processed 950 million transactions last year on behalf of its European user community and currently provides capital market firms with information to assist them in conducting net asset valuations, mark-to-market calculations, fixed-income portfolio mapping, liquidity and volume modelling, as well as reference data population updates.
The £26m deal is cash-based and only now requires regulatory approval from the UK Financial Services Authority (FSA). The firms hope to complete the sale by Q113.
“Xtrakter is a strong fit with our business and provides MarketAxess with an expanded set of services that are highly complementary to our core strengths in electronic trading, market data and straight-through processing [STP] solutions for the global credit markets,” said Rick McVey, chief executive officer (CEO) of MarketAxess.
“Xtrakter is a leading provider of regulatory trade reporting to the FSA and is well positioned to play a key role in the UK and other European markets as regulators look to reduce trade settlement risk and increase market transparency under the proposed Markets in Financial Instruments Directive II (MiFID II) mandate.”
Euroclear’s CEO, Tim Howell, added that his ex-colleagues and the clients at Xtrakter will find an innovative and strong team at MarketAxess who are eager to move quickly and assertively to develop the portfolio of services to meet changing market needs. “Post-acquisition we will continue working with Xtrakter and MarketAxess to deliver further transparency and efficiency to the international capital markets,” he said.
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