BrokerTec, NEX Group’s global electronic fixed income trading platform, announces today that following Bank of Italy approval it has completed the transaction to acquire a majority stake in e-MID SIM SpA (e-MID), the first Italian electronic central limit order book (CLOB) platform for interbank deposits and Overnight Indexed Swaps (OIS).
The transaction offers BrokerTec Europe a strong footprint in the important Italian debt and money markets.
As a subsidiary of BrokerTec Europe Ltd, e-MID will offer its Italian Government Bond Repo and interbank deposit businesses to BrokerTec’s extensive international client base while BrokerTec will integrate the e-MID technology, provided by List SpA, into its technology architecture. BrokerTec will also offer e-MID additional Euro zone Repo and Government Bond products.
Giuseppe Attana will remain as Chairman of the e-MID Board and John Edwards, Richard Leighton and Lorenzo Ruffatti will join e-MID’s Board to represent BrokerTec and the broader NEX Group.
Seth Johnson, Chief Executive Officer, EBS BrokerTec, said: “This acquisition is an important strategic step for BrokerTec. e-MID is the leading provider for the Italian interbank deposit and money markets which are the largest in Europe. We are committed to growing our footprint in this central market and to contributing to its development and evolution. e-MID brings access to the domestic financial community in Italy and we will work closely with the management team to develop existing products and services, as well as to offer EBS BrokerTec products to the current client base.”
BrokerTec plans to establish a money market offering for Italian corporates by connecting e-MID with EBS Treasury, its money market fund (MMF) platform for the corporate community. It is also expected that there will be other areas of opportunity for e-MID to work with the wider portfolio of NEX Group businesses.
John Edwards, Managing Director, BrokerTec Europe Ltd who will manage the overall integration of the e-MID business and on-going daily operations, said: “This acquisition presents an exciting opportunity to expand both the core e-MID and BrokerTec product suites and in particular secure better access to the largest and most active Sovereign bond market in Europe. The acquisition and integration of this business will enable BrokerTec, and the rest of the NEX Group, to better access the extensive Italian financial community and allow us to develop new product lines.”
Giuseppe Attana, Chairman of e-MID, said: “We are very proud of our reputation and success in the Italian fixed income market. Our technology, products and customer base fit well with those of BrokerTec Europe and we’re looking forward to working with the NEX Group as a whole to strengthen our offering.”
The transaction closed on 30 March 2017.