Deutsche Börse is buying a minority stake in Investors Derivatives solutions (ID's), a Paris-based technology provider that has developed a request for quotes (RFQ) hub.
The exchange will pay a "euro amount in the single digit million range" for the minority stake in a company it claims will boost its provision of pre-trade price transparency in the cash equity and derivatives area for institutional investors.
ID's RFQ-hub went live last April and is supported by more than ten of the largest equity derivatives dealers/brokers in the transmission and receipt of tradable competing quotes, enhancing price transparency and execution. It also helps buy side firms in demonstrating best execution for MiFID compliance.
Peter Reitz, MD, business development, Deutsche Börse, says: "This investment in RFQ-hub highlights our recognition of the changing industry landscape and aims to support the G20 commitments for improving the integrity and safety of financial markets and of the OTC markets in particular."