Digital Vega operates the Medusa FX options platform, on which five banks act as market makers, with a further five slated to begin providing liquidity soon. The platform offers a variety of execution and trade reporting tools. It is also linked to Traiana’s Harmony network, which delivers real-time trade notifications and comprehensive position and exposure management tools. The State Street deal follows a similar one made by Deutsche Börse, operator of Europe's largest futures exchange, which bought a minority stake in Digital Vega earlier this month. No terms from either deal have been disclosed, though Deutsche Börse confirmed that it would pay a low seven-figure sum for its stake. State Street’s holding will be of equal size, Digital Vega confirms.
“From the outset of the Digital Vega project, we knew that in order to compete on the global stage, we would need strategic partners, and with this investment the final piece of that plan is in place,” says Digital Vega chief executive officer Mark Suter.
Suter adds that the investment by Deutsche Börse and State Street will allow Digital Vega to leverage the market position of the larger firms, and help deliver its range of products to a wider global audience. It will also help the firm adapt to upcoming changes in the regulatory landscape more quickly, he says.
State Street already operates a multi-dealer spot-focused platform, Currenex, which it bought in 2007 for $564 million.