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

Upcoming Webinar: Best Practices for Building High-Performance Data Infrastructures

Date: 23 June 2022 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes The requirement for high-performance data systems to support trading analytics for hedge funds, high-frequency trading firms and electronic liquidity providers is well established. But the explosion in Big Data over the past several years has expanded the scope of...

BLOG

APG Asset Management to Deploy IHS Markit’s ThinkFolio on AWS for Global Multi-Asset Portfolio

Dutch pension provider APG Asset Management, the largest pension provider in the Netherlands with €633 billion in assets under management, plans to transform front-office operations for its multi-asset portfolio globally using IHS Markit’s thinkFolio investment management and trading system. Under the arrangement, IHS Markit will deploy and manage the infrastructure, as well as the thinkFolio...

EVENT

TradingTech Summit London

Now in its 11th year the TradingTech Summit London brings together the European trading technology capital markets industry, to explore how trading firms are innovating in today’s cloud and digital based environment to create flexible, scalable trading platforms to support speed to market and business agility.

GUIDE

Regulatory Data Handbook 2018/2019 – Sixth Edition

In a testament to the enduring popularity of the A-Team Regulatory Data Handbook, we are delighted to publish a sixth edition for 2018-19 of our comprehensive guide to all the regulations and rules that might impact data and data management at your institution. As in previous editions of the Regulatory Data Handbook, we have updated...