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Deutsche Börse Group, a major player in financial markets, has strengthened its position in the index industry with a strategic investment in MerQube. The US-based, technology-led research and index firm specialises in designing and calculating innovative rules-based investment strategies and passive solutions.
Deutsche Börse Group's investment amounts to US$15 million for a minority stake, co-investing with private markets asset manager 7RIDGE.
Since its inception in 2019, MerQube has focused on creating a wide array of strategies. These include sell-side indices for complex strategies, which underpin index derivatives and structured products, alongside defined outcome and volatility management indices. The firm also provides real-time and intraday indices, supporting flexible rebalancing schedules and advanced execution methodologies.
This investment solidifies Deutsche Börse Group's leadership within the index sector. MerQube's emphasis on bespoke complex indices, its robust presence in the Americas, and its cloud-native SaaS index and self-indexing platforms offer significant synergies with Deutsche Börse Group’s established index business, STOXX, which is part of ISS STOXX.
Christian Kromann, member of the Executive Board of Deutsche Börse Group
Christian Kromann, member of the Executive Board of Deutsche Börse Group commented:
We are thrilled to invest in and partner with MerQube. The demand for customization, flexibility, and speed-to-market in index-linked investing has been accelerating. MerQube’s cutting-edge technology and innovative approach to indexing respond to this demand. We are convinced that by combining strengths with MerQube, we will be able to further drive true innovation in the indexing industry.
Vinit Srivastava, CEO of MerQube
Vinit Srivastava, CEO of MerQube, added:
We are thrilled to welcome our new investors, Deutsche Börse Group and 7RIDGE, as we accelerate delivery of our vision to close the fintech gap in passive investment. The partnership and trust provided by these two leading organizations will help us further our leadership in indexing for derivatives-based investing, bringing innovation and scale to complement our unique technology and deep understanding of the ecosystem.
The expansion of sophisticated index and derivatives-based investment strategies, facilitated by advanced fintech solutions, highlights a broader trend in the institutional FX market. As firms like MerQube innovate in passive investment using their cutting-edge technology for investment strategies, the underlying demand for robust market liquidity solutions becomes ever more critical. This evolution directly impacts various facets of the financial ecosystem, from Tier 1 liquidity providers to prime brokerage services, which are essential for efficient execution and risk management in complex derivatives trading.
For more on the evolving landscape of institutional finance and fintech, explore LiquidityFinder Insight for the latest analysis.
