MarketAxess Holdings, the electronic trading platform operator for U.S. and European corporate bonds, emerging markets bonds and other types of fixed-income securities, has agreed to acquire Euroclears Xtrakter, the provider of regulatory transaction reporting, financial market data and trade matching services to the European securities markets.
The purchase price is 26 million (approximately $42.0 million) in cash, plus transaction costs. MarketAxess expects to complete the acquisition of Xtrakter in the first quarter of 2013.
In 2011, Xtrakter processed 950 million transactions on behalf of its user community and currently provides capital market firms with information to assist them in conducting net asset valuations, mark-to-market calculations, fixed-income portfolio mapping, liquidity and volume modeling, as well as reference data population updates. The company also provides market (pricing) data for approximately 53,000 international securities and internationally traded government bonds.
Rick McVey, CEO of MarketAxess, said: Xtrakter is a strong fit with our business and provides MarketAxess with an expanded set of services that are highly complementary to our core strengths in electronic trading, market data and straight-through processing solutions for the global credit markets. Xtrakter is a leading provider of regulatory trade reporting to the UK Financial Services Authority and is well positioned to play a key role in the UK and other European markets as regulators look to reduce trade settlement risk and increase market transparency under the proposed MiFID II mandate.
Tim Howell, CEO of Euroclear, added that post acquisition, the company will continue working with Xtrakter and MarketAxess to deliver further transparency and efficiency to the international capital markets.
(JDC)