BrokerTec, NEX Group’s global electronic fixed income trading platform, announced today that it has agreed to acquire a controlling majority stake in e-MID SIM SpA, the first Italian electronic central limit order book (CLOB) platform for interbank deposits and Overnight Indexed Swaps (OIS).

The transaction is subject to certain conditions, including approval from the Bank of Italy. If this goes ahead, the transaction is expected to be completed in the next few months.

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BrokerTec Europe Subsidiary

Upon completion of the transaction, e-MID will become a subsidiary of BrokerTec Europe and the company’s management will report to its Managing Director John Edwards.

After the acquisition, e-MID will look to offer its Italian Government Bond Repo and interbank Deposit businesses to BrokerTec‘s international client base.

BrokerTec will integrate the e-MID technology provided by List SpA into its leading technology architecture and offer e-MID additional eurozone Repo and Government Bond products.

Further Opportunities

In time, BrokerTec will look to establish a money market offering for Italian corporations, leveraging the EBS BrokerTec brand and combined business operations to connect e-MID with EBS Treasury, its money market fund (MMF) platform for the corporate community.

It is also envisaged that there are other areas of opportunity and overlap for EBS BrokerTec and NEX Optimisation, a NEX Group business which helps clients reduce complexity and optimise resources across the transaction lifecycle.

Seth Johnson, Chief Executive Officer, EBS BrokerTec, said: “The acquisition of e-MID is strategically important to the BrokerTec business as we look to expand into the Italian financial markets. Their technology and products are complementary to those of BrokerTec and I’m confident that they will positively contribute to EBS BrokerTec’s overall strategy of providing a truly multi-product offering to an expanded global client base.”

Giuseppe Attana, Chairman, e-MID, added: “The acquisition by BrokerTec Europe will allow e-MID to become part of the NEX Group which has a worldwide footprint providing us with a great opportunity to relaunch our Company and market which is key for the efficiency of the Italian financial market.”