Euclid Opportunities, the financial technology investment business of NEX Group, has invested in institutional research outfit RSRCHXchange.
Launched in 2014, RSRCHXchange is bidding to take advantage of new rules mandated by MiFID II which forces asset managers to pay separate fees for stock research - previously bundled up as an add-on to execution charges levied by broker dealers.
The firm says it research marketplace is used by more than 1000 asset management firms and around 190 bank, broker and boutique research providers.
The investment is the latest in a string of deals conducted by Euclid Opportunities, the financial technology investment fund that is set to play a key strategic role for NEX Group as it charts a new path following the sale of its voice broking business to Tullett Prebon. Other recent Euclid Opportunities investments have focused on young firms transforming the capital markets industry including Abide Financial, ENSO Financial, OpenFin, Duco and OpenGamma.
Michael McFadgen, managing director at Euclid Opportunities, says: “MiFID II research unbundling is a key challenge for our clients and the wider market in 2017. RSRCHXchange is bringing next generation technology to solve a complex regulatory challenge while also allowing both providers and consumers of research to extract greater value from content.”
The size of the investment was not dicslosed.