NEX unit Euclid buys into RSRCHXchange to prepare for MiFID II
Interdealer broker NEX Group subsidiary Euclid has invested in institutional research marketplace RSRCHXchange as part of the company’s planned global expansion efforts. The investment unit acquired several fintech companies in 2016, including data control platform Duco, automation service AcadiaSoft, cloud comms provider Cloud9, blockchain developer Digital Asset Holdings and risk analytics firm OpenGamma. The investment was completed in response to MiFID II, which will force unbundling of research and execution when it comes into force in 2018.
NEX Group’s Euclid has made a strategic investment in institutional research marketplace, RSRCHXchange, ahead of global expansion plans.

RSRCHXchange is the latest to join the Euclid Opportunities portfolio.

NEX Group’s investment arm Euclid has been busy over the course of 2016, acquiring emerging FinTech companies prior to the Group’s rebrand into NEX Group.

Its portfolio includes Duco, a data control platform - OpenGamma, a risk analytics firm - AcadiaSoft, an industry collaboration to automate collateral management - Cloud9 Technologies, a cloud-based communication provider - and Digital Asset Holdings, a developer of blockchain technology.

The investment was made in response to MiFID II’s unbundling rules, which managing director at Euclid Opportunities, Michael McFadgen, said are a key challenge for NEX Group’s clients and the wider market in 2017.

“RSRCHXchange is bringing next generation technology to solve a complex regulatory challenge while also allowing both providers and consumers of research to extract greater value from content,” he said.

More than 1,000 asset managers and 190 banks, brokers and boutique research providers currently use the institutional research company.

Co-founder of RSRCHXchange, Jeremy Davies, added, “the asset management community is on the cusp of unprecedented change as research and execution costs unbundle in less than 12 months when the MiFID II requirements come into effect.”

Terms of the investment were not disclosed.