LONDON — European exchange operator Euronext has invested $US10 million (£8.1 million) in London fintech startup Algomi.
Euronext announced the investment on Friday. It already has a joint venture with Algomi, which will see Euronext leverage Algomi’s bond trading technology to push into North America and Asia.
Algomi runs the Honeycomb Network, a platform that lets investors see which dealer is best placed to make corporate bond trades happen. Bank dealers enter potential trades into a secure network, which then matches those trades and suggests similar bond trades if the ones desired are unavailable. The startup was set up by former UBS bankers in 2012.
Euronext runs stock and derivatives exchanges across Europe, with a particularly strong foothold in share markets. 1,300 companies with a combined market capitalisation of €3.3 trillion are listed on its stock exchanges.
However, Euronext is keen to push into the fixed income market. Stéphane Boujnah, CEO of Euronext, says in a release announcing the investment:
“Algomi’s cutting edge technology, combined with Euronext’s established position in the market place, will enable us to further diversify our revenues and capture selected opportunities arising outside of Europe, whilst tackling the symptomatic illiquidity of global corporate bond markets in partnership with our clients.
“This partnership with Algomi is central to our Fixed-income ambitions and our wider FICC diversification plans as part of our ‘Agility for Growth’ plan. As a strategic investor taking a board seat, we will be in a strong position to oversee the successful growth of the business, and consolidate future trading activity globally.”
Stu Taylor, Algomi’s cofounder and CEO, says:
“This long-term commitment to Algomi by Euronext cements our position in the market. We are particularly excited by the access to the Euronext network of global regulated exchanges and the liquidity opportunities this will provide our clients. The initiative will allow us to bring Algomi’s unique bond information network to new parts of the credit market, something which has been very positively received by our existing bank clients.”
Algomi employs 140 people across offices in London, New York, and Hong Kong.
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