Deutsche Börse AG has announced the purchase of a minority stake in R5FX Ltd., a London based FinTech firm specializing in emerging currencies. R5 focuses on developing a new interbank liquidity pool for eNDFs and EMFX. It has been designed by and for the banks in order to optimize price and liquidity discovery. Its electronic platform combines the benefits of both exchange and OTC models for this fast growing sector of the global FX market. The company has already signed letters of intent with over 20 bank clients to join the venue and anticipates going live at the end of Q1 2015. These clients are based in the major financial centers, e.g. Hong Kong, London, New York and Singapore.
“We are extremely pleased to announce this investment from such a strategically important partner and view this as a clear endorsement of our vision and business model. By leveraging our collective strengths, and working with our bank supporters, we intend to establish R5 as one of the most significant participants in the increasingly changing FX environment”, explained Jon Vollemaere, CEO of R5.