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Nasdaq OMX closes Agora X majority ownership deal
19 February 2010
Nasdaq OMX has said it has finalised a deal to secure an 85% stake in the over-the-counter derivatives exchange Agora X.
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Nasdaq OMX
Bob Greifeld
Brent Weisenborn
Geir Reigstad
Nasdaq OMX has said it has finalised a deal to secure an 85% stake in the over-the-counter derivatives exchange Agora X.
The deal which was revealed by Bob Greifeld, chief executive officer of Nasdaq OMX, in a conference call last week, though the deal had yet to be completed until February 17.
Nasdaq OMX said as a result of the acquisition, Agora X will become a part of Nasdaq OMX’s commodities business. Brent Weisenborn, CEO at Agora X, will report to Geir Reigstad, head of the exchange’s commodities offering.
The New York-based exchange said FC Stone Group, which previously held the majority ownership position in Agora X, will continue to hold a minority stake.
Agora X was launched with funds from Nasdaq OMX and futures brokerage FC Stone Group. Nasdaq OMX acquired a 20% stake for $7.5m before its launch in 2008.
A Nasdaq OMX spokesperson refused to divulge the financial details of the acquisition.
Agora-X enables market participants to negotiate OTC transactions in commodity and derivative contracts, allowing bilateral negotiation but with market transparency. Agora-X offers clearing through CME Group’s OTC clearing house, CME ClearPort on grain swaps.