Deutsche Börse has acquired a minority stake in Digital Vega, a small London based company which provides electronic FX options trading technology to buy and sell-side firms.
The Digital Vega system broadcasts request for quotes (RFQ) from buy-side asset managers, corporates, hedge funds and regional banks for FX option transactions to sell-side liquidity providers. The service is supported by seven of the largest FX banks, with a further five banks looking to provide pricing services in the near future.
The investment - in the "single digit million range" - gives The German exchange operator a foot-in-the-door in the FX derivatives space, and positions it for up-and-coming reforms mandating the provision of pre-trade price transparency to institutional investors.
Peter Reitz, managing director of Deutsche Börse and member of the Eurex executive board, says: "This investment in Digital Vega highlights our recognition of the changing industry landscape and aims to support the G20 commitments for improving the integrity and safety of the OTC markets. The software and processes provided by Digital Vega are an important element to achieve the regulator's goal of higher transparency."