Through its financial technology investment business, Euclid Opportunities, NEX Group has invested in a cloud-based marketplace, RSRCHXchange, that is also a MiFID II workflow solution for accessing institutional research. With NEX Group as stakeholder, RSRCHXchange is expected to expand further its business worldwide in increased pace.
Its platform, RSRCHX, was launched in 2014 ahead of MiFiD II rules that come into full force in January 2018 and is used by over 1,000 asset management firms and approximately 190 bank, broker and boutique research providers, that count on its technology to improve the way they consume, purchase and monitor research in one single platform and staying MiFiD II compliant.
“MiFID II research unbundling is a key challenge for our clients and the wider market in 2017. RSRCHXchange is bringing next generation technology to solve a complex regulatory challenge while also allowing both providers and consumers of research to extract greater value from content”, said Michael McFadgen, Managing Director at Euclid Opportunities. “The business has made amazing progress thus far and we’re delighted to bring our capital, operational expertise, and networks to help scale the business globally”, Mr. McFadgen added.
Jeremy Davies, Co-Founder at RSRCHXchange, commented on the announcement: “The asset management community is on the cusp of unprecedented change as research and execution costs unbundle in less than 12 months when the MiFID II requirements come into effect. We are now providing over 1,000 buy-side firms with a MiFID II solution for buying, managing and procuring investment research. Euclid Opportunities’ investment in RSRCHXchange has come at a pivotal moment in time and will enable us to further develop the RSRCHX platform for the benefit of both asset managers and research providers.”
“We are thrilled to have received investment from Euclid Opportunities, who have a proven track record of investing and growing innovative fintech firms. Their investment is a testament to our business model and comes at a time of great momentum for our RSRCHX platform”, said Vicky Sanders, Co-Founder, RSRCHXchange. “We look forward to Euclid’s support well beyond the implementation of MiFID II, to achieve our growth ambitions for the future”, Ms. Sanders concluded.
NEX Group has used Euclid Opportunities for several investments in financial technology companies other than RSRCHXchange. These include Abide Financial, ENSO Financial, OpenFin, Duco and OpenGamma.