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

NYSE and Fixnetix Combo Accelerates Global Rollout of “Frictionless” Market Access

Subscribe to our newsletter

So, in the wake of NYSE Euronext’s failed merger with Deutsche Borse, executives at the exchange group are clearly embarking on a Plan B. Part of that is the deal it announced on February 16, which will see it take a 25% stake in Fixnetix, a provider of co-located, managed services for low-latency market data, market access and pre-trade risk management. The “strategic investment” – which allows for a complete acquisition down the road – will see the two collaborate to offer their respective services on a global basis.

Financial terms of the deal were not disclosed, though my esteemed colleagues at the Financial Times (I used to work there, you know) reckon the stake values Fixnetix at £100 million. Apparently, both sides already know what the financials will be should NYSE gobble up the outstanding 75% during the next three years.

While the NYSE – through its NYSE Technologies unit – and Fixnetix will be run independently, the aim is to collaborate to offer customers a full, complementary suite of services. Even though there is some overlap in what each provides, both companies share a general vision of making it “frictionless” for trading firms to do business in different and new markets – through managed services that do not require those firms to invest heavily upfront to begin, and later expand, operations.

For Fixnetix, NYSE’s investment and global presence – particularly in Asia where demand for its services is high – will help it accelerate delivery of its services in new markets. Time to market is also an attraction for the NYSE, which is planning a global rollout of its Liquidity Hubs, extending its reach beyond New York City, London, Tokyo and Toronto. For the exchange, even with its deep pockets, it’s basically a case of buying will be faster than building – especially in Europe.

For sure, the combined NYSE Technologies/Fixnetix portfolio – covering cloud computing to FPGA-accelerated risk management – should provide a comprehensive – and attractive – offering for customers that have had to take a more piecemeal approach to service procurement to date, or perhaps throw their lot in with Thomson Reuters.

For NYSE Technologies and Fixnetix, the risk is that the two operations will not see the strategic prize for the inevitable turf skirmishes that will result from service overlap – which will probably lead to confused customers going elsewhere. If that does happen, one might expect the NYSE to exercise its buyout option sooner than later, though that could also happen if things are going swimmingly.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: The emerging structure of the institutional digital assets market

As interest in trading digital assets continues to increase among institutional investors, so too does the need to focus on market structure, regulation and trading solutions. For financial institutions that get it right the rewards will be significant, but it is not necessarily easy and the challenges are many. This webinar will consider how digital...

BLOG

Forge Launches OMS for Institutional Trading in Private Markets

Forge Global Holdings, the infrastructure, data services, and technology solutions provider, has publicly released Forge Pro, a trade order management system (OMS) specifically designed for institutional investors trading in private company securities. As the interest in private markets grows among institutions, Forge Pro aims to make private market data more accessible while providing investors with...

EVENT

ESG Data & Tech Summit London

The ESG Data & Tech Summit will explore challenges around assembling and evaluating ESG data for reporting and the impact of regulatory measures and industry collaboration on transparency and standardisation efforts. Expert speakers will address how the evolving market infrastructure is developing and the role of new technologies and alternative data in improving insight and filling data gaps.

GUIDE

Trading Regulations Handbook 2021

In these unprecedented times, a carefully crafted trading infrastructure is crucial for capital markets participants. Yet, the impact of trading regulations on infrastructure can be difficult to manage. The Trading Regulations Handbook 2021 can help. It provides all the essentials you need to know about regulations impacting trading operations, data and technology. A-Team Group’s Trading...