Trading venue operator LMAX Group announced on Tuesday that it has acquired FX HedgePool.
The acquisition appears to be an attempt by LMAX to expand its product set and grow its client base.
FX HedgePool was mainly designed for buy-side participants – like asset managers and hedge funds – to hedge out their FX exposure, using swaps.
The company’s technology allowed these institutions to trade against one another.
LMAX currently only offers FX spot and NDF trading, so the acquisition will enable them to add swaps to their portfolio of products.
The acquisition also provides some synergies on the client front. LMAX now probably has a book of buy-side clients but it can also expand FX HedgePool’s swaps offering to a much broader audience.
“LMAX Group is focused on providing innovative solutions to the market, constantly exploring ways to enhance and expand our offering for institutions,” said LMAX CEO David Mercer.
“We believe that with the acquisition of FX HedgePool, our combined client base will benefit from access to a wider suite of products and increased global distribution.”