US brokerage GFInet is to acquire Fenics, a UK-based derivatives software house specialising in FX options analytic software.
Upon completion of the acquisition, GFInet says it will offer electronic and voice brokerage services, real time data and analytics as well as technology services to the online OTC cash and derivative markets with the aim of creating an integrated trade execution desktop across all markets.
Fenics says its option pricing technology is used in 95 percent of the world's investment banks, serving 350 customers in 800 sites around the world.
GFInet intends to combine Fenics' analytics with an online FX options trading platform which is due to be launched early in the new year, offering traders one-stop pricing, trading and trade reporting. GFInet also plans to extend and link Fenics to all existing and future GFInet markets such as electricity and credit derivatives.
John Ashworth, CEO of Fenics, says the company will extend its offering into new asset classes very quickly with Fenics 2001 scheduled for release in February. "The future in derivative market trading will belong to those who can deliver truly integrated services. We can do that now," he adds.
GFInet recently launched hybrid voice and automated trading in electricty and repo markets. "By integrating analytics with online trading we are starting straight thru processing where it should be started, at the very inception of the trade. This will improve efficiency for our customers and drive even more liquidity into our online trading platforms," says Steve McMillan, GFInet's chief operating officer.
After the acquisition GFInet and GFI Group will have more than 400 staff combined with headquarters in New York and offices in London, Tokyo, Hong Kong, Singapore, Sydney and Tel Aviv.