State Street Corporation has signed a deal to acquire online foreign exchange (FX) trading network Currenex for $564 million in cash.
Founded in 1999 as an independently-owned online FX platform, Currenex serves banks, hedge funds and other active traders. The company currently ranks third in the FX portal stakes behind the bank-backed FXall consortium and State Street's own FX Connect system.
Joseph Hooley, vice chairman and global head of investment servicing and investment research and trading at State Street, says the acquisition diversifies State Street's trading customer base beyond traditional asset managers to include more active currency managers and hedge funds.
"The future of global electronic foreign exchange trading will be determined by who can provide the most efficient technology solutions that allow quicker access to markets and flexible, comprehensive trading solutions," adds Hooley.
Boston-based State Street all ready operates its own institutional electronic foreign exchange trading platform, FX Connect. The firm says Currenex complements its existing FX system "with almost no overlap".
Once the transaction closes, State Street says it will integrate Currenex's technology with its multi-asset class trading platform, Global Link.