MIH has agreed to acquire MGEX after its demutualisation by its members, operating as a wholly owned subsidiary of MIAX Group


Minneapolis Grain Exchange. (Credit: McGhiever/Wikipedia.)

Miami International Holdings (MIH) has signed an agreement to acquire Minneapolis Grain Exchange (MGEX) for an undisclosed amount.

MIH is the parent holding company for three fully electronic options trading exchanges, including the Miami International Securities Exchange (MIAX), MIAX PEARL and MIAX Emerald.

MIH has agreed to acquire MGEX after its demutualisation by its members. MGEX will operate as a wholly owned subsidiary of MIH.

MIH is expected to continue the use of MGEX’s trading and clearing operations, including the hard red spring wheat contract.

MIH chairman and chief executive officer Thomas P Gallagher said: “This strategic combination achieves our goal of diversifying our product and service offerings with attractive benefits to our existing and new member firms while simultaneously creating exciting new revenue drivers.

“MGEX provides MIH with a well-established futures platform on which to continue our expansion and puts MIH in control of our own product ecosystem, allowing us to list both options and futures on new products that will be exclusive to our exchanges.”

The transaction will provide MIH with futures exchange and clearing facility

The transaction is expected to be completed in late 2020, subject to MGEX membership approval and customary closing conditions including certain regulatory approvals.

In addition, the transaction is expected to diversify the product portfolio of MIH by providing a futures exchange and clearing facility to the company.

Established in 1881, MGEX is one of the oldest trading venues historically focused on trading in agricultural products, including hard red spring wheat contracts, and is a Designated Contract Market (DCM) and Derivatives Clearing Organisation (DCO).

MGEX president and chief executive officer Mark G Bagan said: “We believe that combining with MIH is the best outcome for our members and futures trading community as a whole.

“No other exchange group is better positioned for future growth, and this acquisition provides MGEX with the resources and scale necessary to further strengthen our product offerings and innovation to drive top-line and bottom-line growth. I, along with all of my MGEX colleagues, look forward to becoming part of the MIH family.”