27 July, AtoZForex.com, Lagos – Deutsche Börse Group AG is one of the leading exchange organisations in the world. The organisation provides various parties access to global capital markets, ranging from financial institutions, investors and companies. Basically, Deutsche Börse Group Covers the whole process chain from clearing, settlement & custody, through to market data, derivatives & securities trading, development & operation of electronic trading systems.
Deutsche Börse Group clarified from a strategic growth perspective, it aims to become a leading global marketplace for multiple asset classes. As FX is the single largest asset class, boasting around $5 trillion on an average daily turnover. Having this said, it's no wonder that the Deutsche Börse Group has placed emphasis on growing this aspect of its operations. This prompted its bid and successful acquisition of the 360T platform, tagging it a "must have" for the German exchange according to a person familiar with the deal.
In more detail, 360T is one of the handful multi-banks in the market which have revolutionised its foreign exchange trading platform over the past decade. The firm describes itself as a leading global provider of web-based trading technology. The best-in-class trading technology, which enables their clients to trade OTC financial instruments. Particularly foreign exchange and short term money market products, but also for FX and interest rate derivatives.
On Sunday, Deutsche Börse announced that it will conclude the acquisition of the Germany-based foreign exchange trading platform 360T for 725 million euros. The organisation surpassed U.S. commodities and currency exchange operator CME Group, in the auction to acquire the 360T platform, according to sources familiar with the deal.
The deal serves as Deutsche Börse’s largest acquisition since 2007, when the Frankfurt-based stock-exchange operator bought U.S. derivatives exchange ISE for $2.8 billion. This deal also represents the first big acquisition of the new Chief Executive Carsten Kengeter. He has targeted further acquisitions, considering that Mr. Carsten Kengeter is in talks with the Swiss Six Group for acquiring the remaining stakes in their index joint ventures Stoxx and Indexium.
According to a spokesperson for the firm, most of the 360T acquisition transaction will be settled in bonds, while no decision has been taken about a potential small capital increase. Adding to that Deutsche Börse aims to keep its indebtedness at an approximate level, allowing the organisation to maintain its AA rating of the Clearstream unit.
Last but not least, data from industry publisher Euromoney indicates that 360T is now the third-largest platform, behind Thomson Reuters-owned FXAll, FX Connect, while just being ahead of Bloomberg. 360T Managing Director Alfred Schorno informed Reuters earlier this year that: “Trading on 360T was above 100 billion euros a day, although the company has since ceased to publish volume data.”