Aquis Exchange has acquired a minority stake in OptimX Markets, a US financial services start-up focused on the block trading market. Aquis COO Jonathan Clelland tells BEST EXECUTION how the firm is meeting demand for block trading via this acquisition.
OptimX – which is a new venture and has yet to produce a profit or loss – will offer investment banks, brokers and other institutions opportunities to find additional matches for order flow, and will be folded into Aquis’ wider product suite for capital markets.
On the acquisition of Aquis, Jonathan Clelland, chief operating officer (COO), told BEST EXECUTION: “We are pleased to have made several significant developments to our dark pool offering since launching the Aquis Matching Pool last year. The ability for our clients to cross large blocks is an appealing addition to our existing suite of order types and we are glad to be offering this additional functionality.
“Block trading is a key part of equity trading and banks, brokers and institutions are placing greater reliance on exchanges ability to offer this execution capability. In conjunction with this we have made an investment in OptimX, a US start-up, who we look forward to working with closely as they develop their UK / EU presence.”
Aquis CEO, Alasdair Haynes, said: “The investment in OptimX is a significant opportunity for Aquis, adding additional connectivity to our successful dark pool (the Aquis Matching Pool) and providing clients with the ability to cross large blocks. This alongside Aquis’s growing functionality will further enhance the range of execution options available to our members.”
It is expected that Clelland will join the board of OptimX as a non-executive director.
The investment was made as part of a consortium which includes DB1 Ventures, the venture capital arm of Deutsche Boerse Group, and was split into two tranches: Aquis will subscribe US$750,000 out of a total first tranche of US$3 million payable in cash, followed by a second tranche in 12 months of a further US$750,000 out of a total $3 million payable in cash.
The pre-money valuation of the first tranche was US$10 million and the valuation for the second tranche will be finalised at the date of investment.
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