MarketAxess Expands Services in Europe, With Purchase
November 5, 2012
MarketAxess Holdings has agreed to acquire Xtrakter Limited, a provider of regulatory transaction reporting, financial market data and trade matching services to the European securities markets.
“We are increasing our investment in Europe,” Rick McVey, Chief Executive Officer of MarketAxess, said. “Xtrakter will expand our regulatory transaction reporting, fixed income trade matching and market data services for European clients.”
McVey said that MarketAxess’s acquisition of Xtraker for approximately $42 million will be financed by cash flow and existing cash reserves. The company expects the acquisition of the Euroclear subsidiary to be completed in the first quarter of 2013.
“ Xtrakter is a leading provider of regulatory trade reporting to the UK Financial Services Authority and other similar Continental European authorities and is well positioned to play a key role in the UK and other European markets as regulators look to reduce trade settlement risk and increase market transparency’’ under new Markets in Financial Instruments Directive mandates, McVey said.
Tim Howell, Chief Executive Officer of Euroclear, said the Belgian financial services company “will continue working with Xtrakter and MarketAxess to deliver further transparency and efficiency to international capital markets.”
For the third quarter of 2012, MarketAxcess also reported total revenues of $48.3 million, compared to $46.6 million a year earlier.
Net income totaled $13.5 million, compared to $13.4 million, in 2011.