Euclid Opportunities, NEX Group’s financial technology investment business, announces today that it has made a strategic investment in RSRCHXchange, a cloud-based marketplace and MiFID II workflow solution for accessing institutional research. The investment will enable RSRCHXchange to continue to expand its global footprint and accelerate growth. Terms of the investment are not disclosed.
RSRCHXchange launched RSRCHX, its marketplace and MiFID II workflow solution for institutional research in 2014, in anticipation of the unbundling rules which come into force in January 2018. A technology driven solution, RSRCHX dramatically improves the way financial institutions manage and consume research, and is used by more than 1,000 asset management firms and around 190 bank, broker and boutique research providers. The marketplace enables asset managers to consume, purchase and monitor research in one purpose-built solution, which tracks firm-wide consumption, improves the procurement process and ultimately ensures MiFID II compliance.
RSRCHXchange is the latest company to join the Euclid Opportunities portfolio. Through Euclid Opportunities, NEX strategically invests in exceptional financial technology companies that are transforming capital markets. Other Euclid Opportunities investments include: Abide Financial, ENSO Financial, OpenFin, Duco and OpenGamma.
Michael McFadgen, Managing Director at Euclid Opportunities, said: “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. 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.”
Jeremy Davies, Co-Founder of RSRCHXchange, said: “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.”
Vicky Sanders, Co-Founder, RSRCHXchange, said: “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 testament to our business model and comes at a time of great momentum for our RSRCHX platform. We look forward to Euclid’s support well beyond the implementation of MiFID II, to achieve our growth ambitions for the future.”