NEX Exchange, a part of NEX Group, has received fresh investment that will result in some significant changes at the firm. According to a statement released by NEX Group, the exchange will retain the funds, which will “be used to develop and grow the business.”
According to a report by the UK’s Daily Telegraph, the investment valued the exchange at £20 million ($26.28 million). The same report indicates that the money invested was injected into the NEX Exchange by a group of investors.
Most notable among them was Oliver Hemsley, the founder of Numis Securities. Hemsley was CEO of Numis – a stockbroker and corporate advisor – from its founding in 1989 until 2015.
The investors were responsible for injecting £10.5 million into NEX Exchange. That investment will see Hemsley receiving a 55 percent stake in the business. It also means that he will become CEO of the firm, replacing Patrick Birley, who has been in the role since April 2014.
Understanding the Gaps in Forex TradingGo to article >>
NEX Exchange rebranding
A NEX spokesperson told Finance Magnates that the deal, assuming it gets the regulator’s nod of approval, will also see NEX Exchange re-branding. It is unclear as to what the company’s new name will be if this does happen.
“We are pleased to have secured new investment in NEX Exchange to further develop the business and enhance our offering for SMEs.” Said Michael Spencer, CEO of NEX Group, “we look forward to working with Oliver Hemsley as he takes the business to the next stage of its growth.”
It is doubtful whether Spencer is overly concerned with the investment. Following an announcement made in March of this year, CME Group is set to acquire NEX Group in a deal worth £3.9 billion ($5.12 million).
That deal is likely to be completed by the end of the year. In the UK, the Competitions and Markets Authority – an antitrust regulator – is in the process of investigating the deal. This is not expected to have any impact on the timelines set out, by both CME Group and NEX Group, for the acquisition.