SGX buys 20 per cent stake in forex trading platform for US$25 million

SGX chief executive Loh Boon Chye told a briefing that the purchase is part of the bourse operator's growth strategy across different asset classes.
SGX chief executive Loh Boon Chye told a briefing that the purchase is part of the bourse operator's growth strategy across different asset classes.PHOTO: ST FILE

SINGAPORE - The Singapore Exchange (SGX) will offer foreign exchange (forex) futures on a trading platform it recently invested in.

It said on Wednesday (March 27) that it has acquired a 20 per cent stake in BidFX for US$25 million with the option to buy additional shares to gain a controlling interest.

SGX chief executive Loh Boon Chye told a briefing that the purchase is part of the bourse operator's growth strategy across different asset classes.

"With this investment, we have an opportunity to offer our suite of Asian (forex) futures alongside the over-the-counter products offered on the BidFX platform, bringing together both pools of liquidity," added Mr Loh, who will join BidFX's board.

BidFX CEO Jean-Philippe Malé said the capital investment will allow the company to "deliver comprehensive (forex) trading coverage to market participants in one workflow management system".

BidFX operates in Singapore, London and New York. Mr Malé said the SGX investment will allow BidFX to expand to Sydney, Tokyo and Hong Kong, among other cities.

He added that BidFX allows its customers, including hedge funds, asset managers and banks, to "trade any currency pairs in any negotiation protocols".

BidFX trades mainly in Asian and G10 currencies such as the euro, the greenback and the Japanese yen, and is a subsidiary of SGX partner TradingScreen, which provides electronic trading solutions.

The SGX's forex futures had an average daily turnover volume of US$4.4 billion last month.