Singapore Exchange (SGX) has agreed to acquire the remaining 80% stake in BidFX from its other shareholders as it seeks to expand SGX’s reach beyond FX futures into the global over-the-counter (OTC) FX market.
BidFX is a cloud-based FX trading platform for institutional investors and has over 100 banks, hedge funds and asset managers currently connected to its platform. It was previously a subsidiary of TradingScreen, which spun it off in 2017.
SGX first acquired a 20% stake in BidFX in March 2019, with the aim of bringing together FX futures with OTC markets. The synergies between SGX and BidFX – coupled with the opportunity to support international FX participants with data and analytics, trade execution and clearing – led SGX to purchase the remaining stake.
The FX market is the largest financial market in the world, with an average daily turnover in the OTC market amounting to US$6.6 trillion. By comparison, the size of the exchange-traded FX derivatives market is only about 2% of the OTC market – presenting significant opportunities for SGX.
“The future of FX lies in the ability for market participants to benefit from price discovery, liquidity and transparency for both OTC and listed futures trading, in a single unified venue. BidFX is ahead of the curve in developing sophisticated electronic FX trading and workflow solutions,” said Loh Boon Chye, Chief Executive Officer of SGX.
“With BidFX as part of the SGX Group, we can now serve a wider FX community with more comprehensive solutions and enhanced distribution capabilities, while bringing together the two growing and mutually-reinforcing pools of liquidity.”
“We are delighted to join the SGX group of companies and combine forces with the largest FX futures marketplace in Asia. We will be, amongst other plans, expanding our coverage to include FX futures, which gives sophisticated investors a hedge to access the broader market across OTC and futures liquidity pools,” added Jean-Philippe Malé, CEO of BidFX.