Singapore Exchange (SGX) has purchased a 20% stake in TradingScreen company BidFX, a cloud-based provider of electronic foreign exchange trading solutions for the global financial marketplace, for $25m in cash.
Broker-neutral order and execution management services can be accessed by BidFX clients to secure customized liquidity in all foreign exchange products from their banks and other providers.
BidFX provides firms with an advanced workflow solution to ensure better execution and encompass a complete suite of negotiation protocols and tools.
BidFX CEO Jean-Philippe Malé said: “This capital investment enables us to enhance our expertise and products to deliver comprehensive FX trading coverage to market participants in one workflow management system.”
SGX noted that the strategic investment is part of its strategy to build core pillars of growth across multiple asset classes.
BidFX, which is a specialized trading platform for global FX markets, intends to use the funds to further expand its operations and better serve institutional investors.
In January 2017, BidFX was spun off as a division of TradingScreen, which offers multi-asset execution and order management system.
BidFX provides a cloud-based and front-end trading platform to assist hedge funds, traditional asset managers and regional banks trade, enhance access to liquidity, generate alpha and simplify workflows.
The liquidity aggregation of BidFX is said to support FX spot, swap and forward for G10 and Asian currencies.
SGX CEO Loh Boon Chye said: “FX is one of our key growth pillars and we are excited to strengthen our service proposition to the market.
“With this investment, we have an opportunity to offer our suite of Asian FX futures alongside the over-the-counter (OTC) products offered on the BidFX platform, bringing together both pools of liquidity. We are confident that over time, they will establish themselves as a global e-FX platform and complement our fast-growing FX business.”
Singapore Exchange is Asia’s major multi-asset exchange that offers listing, trading, clearing, settlement, depository and data services.