About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

How Buying Fixnetix Is Truly a Risky Business

Subscribe to our newsletter

Hot on the heels of Colt’s protracted courtship of MarketPrizm comes yet another corporate action in our beloved low-latency infrastructure segment. This one caught us by surprise, but not because it was unexpected. It’s been expected for so long that we’d forgotten about it, to be honest.

That Fixnetix was ‘for sale’ has been a part of normal life since – I don’t know – since when many of us first heard of the company; that and the longstanding perception that the company is nothing more than a Wombat reseller.

Clearly the latter can’t be the case, as Fixnetix has found a buyer. And this is where the surprise comes in.

Yes, it’s Markit.

No, seriously. It’s Markit. The company that just bought QuIC, the risk management people, is set to sign on the dotted line for Fixnetix, a provider of low-latency connectivity services.

I’m not sure I get it yet, either. But I have a hunch what this is about, and it’s all about risk.

Smarting – for quite some time – about this market perception as a pure infrastructure play, Fixnetix has been working hard to add value-added services to its offerings. You may recall that it quashed the Wombat perception with the acquisition of Market Systems Technology, an old-school ticker plant developer that once built an equities data feed business for Telerate no less.

And yet we continued to be scolded for referring to the company has a high-end market data distribution platform that was highly successful in helping prime brokers offer technology services to their hedge fund clients. There was more – so much more – to the offering. And this, it seems to me, is the risk bit.

For high in the hierarchy of what Fixnetix has brought to the table is a set of pre-trade risk management capabilities that help clients operate in the high-speed multi-venue marketplace. Think FTEN, Mantara and the like. And as our trusty readers will know, this is a very hot item, what with SEC Rule 15c-3-5 and whatnot.

So, our theory is that Markit is on a roll to construct a risk workflow suite of offerings, with QuIC at its core, its own valuations and other risk-related information supplementing, and now Fixnetix completing the pre-trade risk circle.

Now, we’ve been wrong before. But we don’t think we are on this one.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: From Data to Alpha: AI Strategies for Taming Unstructured Data

Unstructured data and text now accounts for the majority of information flowing through financial markets organisations, spanning research content, corporate disclosures, communications, alternative data, and internal documents. While AI has created new opportunities to extract signals, many firms are discovering that value is constrained not by models, but by the quality of the content, architecture,...

BLOG

smartTrade’s kACE Acquisition Signals the Next Phase of FX Derivatives Automation

smartTrade’s agreement to acquire kACE Financial from BGC Group underscores a decisive shift in institutional FX trading technology, as the market moves beyond connectivity-led platforms toward deeper pricing intelligence, derivatives automation, and converged front-office workflows. Under the terms of the transaction, kACE is valued at up to $119 million, comprising an initial $80 million payment...

EVENT

Data Management Summit London

Now in its 16th year, the Data Management Summit (DMS) in London brings together the European capital markets enterprise data management community, to explore how data strategy is evolving to drive business outcomes and speed to market in changing times.

GUIDE

The Data Management Implications of Solvency II

This special report accompanies a webinar we held on the popular topic of The Data Management Implications of Solvency II, discussing the data implications for asset managers and their custodians and asset servicers. You can register here to get immediate access to the Special Report.