Company News

Broker Marex Spectron buys X-Change to bulk up in N.America

LONDON, Nov 11 (Reuters) - Commodities broker Marex Spectron has agreed to buy X-Change Financial Access (XFA), a U.S. specialist in exchange-traded derivatives, to boost its North American business, Marex said on Wednesday.

Chicago-based XFA is an agency-only broker in benchmark global products such as options on equities and commodities, privately-held Marex said in a statement.

XFA accounted for over 50% of all volumes in S&P 500 index options during the first three quarters of 2019, Marex said.

“This acquisition will be an important building block in our plans to expand in North America, which is our fastest growing region,” said Marex Chief Executive Ian Lowitt.

London-based Marex provided no financial details about the deal, which it said was due to close on Nov. 13.

Marex, majority owned by private equity firms, is one of the largest commodity brokers, executing about 31 million trades and clearing 183 million contracts a year.

The broker has been very active in acquisitions, with the latest purchase the eighth since the start of 2019. In August, it bought French market-maker BIP Asset Management and in March acquired scrap metals company Tangent Trading Ltd.

In September, Marex posted here a 48% rise in first-half pretax profit to $38.2 million, with revenues up 28% from the previous year.