Euroclear is pleased to confirm its acquisition of MFEX Group, an international digital fund distribution platform.
Euroclear had first announced its intent to acquire MFEX “on March 26, 2021.” The financial terms of the deal have not been shared publicly.
As mentioned in a release, the combination of MFEX’s distribution platform with Euroclear’s FundSettle post-trade expertise creates “a compelling offering for fund distributors and fund management companies globally.”
MFEX’s broad fund distribution network and talented team will be “complementary” to Euroclear, “enhancing and extending Euroclear’s customer proposition which will further grow the funds business,” the announcement noted.
Lieve Mostrey, CEO at Euroclear, stated:
“We are delighted to have completed the acquisition of MFEX Group. This transaction brings together two highly complementary businesses and we look forward to working with our new colleagues at MFEX to build a stronger fund distribution proposition for our clients.”
As noted in the release, the Euroclear group is the financial industry’s “trusted” provider of post trade services. Euroclear offers settlement and custody of local and cross-border securities for bonds, equities and derivatives to investment funds.
Euroclear is “a proven, resilient capital market infrastructure committed to delivering risk-mitigation, automation and efficiency at scale for its global client franchise.”
The Euroclear group comprises Euroclear Bank, the International CSD, and Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & International.
The Euroclear group “settled the equivalent of EUR 897 trillion in securities transactions in 2020, representing 276 million domestic and cross-border transactions, and held EUR 32.8 trillion in assets for clients by end 2020.”
As mentioned in the release, MFEX is an independent expert in international fund distribution. It provides a comprehensive solution for fund companies and distributors. The MFEX Group was established in Sweden back in 1999 and is based in Stockholm with additional offices in Paris, Luxembourg, London, Geneva, Kuala Lumpur, Milan, Madrid, Umea, Hong Kong, Singapore and Zürich. The “main supervisory authority” is the Swedish Financial Supervisory Authority (Finansinspektionen).
Today, MFEX is considered a pan-European leader with an international presence in 52 countries on 5 continents with over 300 workers.
The firm is divided into four main business units: Trading and custody, Distribution agreement and rebate collection, Data and fund information and Due Diligence / AML & KYC (Global Fund Watch).