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Northern Trust (NTRS) to Boost FX Business With BEx Buyout

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With an aim to further strengthen its Global Foreign Exchange business, Northern Trust (NTRS - Free Report) has announced a deal to acquire Chicago-based BEx LLC — a foreign exchange (FX) software solutions provider. Notably, the financial terms and other details related to the agreement have not been disclosed.

The deal builds on the exclusive partnership between Northern Trust and BEx, which was announced in 2016. The acquisition provides the company the ownership of a platform that offers algorithmic FX trading, global liquidity aggregation as well as transparency in execution and pricing to institutional clients across the globe.

The buyout will further provide support to Northern Trust’s global FX execution capabilities. Pete Cherecwich, President of Corporate & Institutional Services at Northern Trust said, “In an evolving FX marketplace, this acquisition provides a foundation for sustained growth and innovation on behalf of our clients.”

Additionally, the acquisition of BEx will significantly strengthen Northern Trust’s capability to launch innovative products along with further improving the speed, reliability and quality of its FX services.

Over the past few years, Northern Trust has been integrating BEx technology with its global FX platforms, including CompleteFX and FX Algo Suite. These efforts have substantially supported the company’s FX operations.

Further, the company has been enhancing its technological capabilities. Its innovative technology-driven hedge fund administration capabilities, brought to the marketplace via Northern Trust Hedge Fund Services, clearly provides an attractive proposition to clients.

Additionally, in June 2018, the company acquired Citadel’s Omnium Technology Platform to provide innovative solutions for alternative fund managers, asset managers, institutional investors and family offices, globally. All these efforts are expected to result in further improvement in Northern Trust’s revenues.

Shares of Northern Trust have lost 5.5% so far this year compared with 9.1% decline for the industry it belongs to.



Currently, Northern Trust carries a Zacks Rank #3 (Hold).

Some stocks in the finance sector worth a look are Citigroup (C - Free Report) , JPMorgan (JPM - Free Report) and Morgan Stanley (MS - Free Report) . All these stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Current-year earnings estimates for Citigroup have been revised 1.5% upward over the past 60 days. Further, the company’s shares have gained 5.4% over the past two years.

JPMorgan’s earnings estimates for 2018 have moved 1.3% upward over the past 60 days. Further, over the past two years, the company’s shares have gained 27.5%.

Current-year earnings estimates for Morgan Stanley have been revised 3.1% upward over the past 60 days. Further, the company’s shares have gained 1.1% over the past two years.

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