MFEX Company

MFEX Company: A Comprehensive Overview

1. Company Overview

Founding Date and Background

MFEX, or MFEX Mutual Funds Exchange AB, was founded in 1999 in Sweden by Oliver Lagerström. The company has established itself as a leading B2B open architecture fund distribution platform, focusing on mutual fund distribution and providing infrastructure that facilitates access between fund companies and distributors.

Parent Company/Ownership Structure

In March 2021, MFEX was acquired by Euroclear, a prominent post-trade service provider. This acquisition allowed MFEX to enhance its service offerings and expand its global reach. Prior to the acquisition by Euroclear, MFEX was backed by Nordic Capital, which invested in the company to support its growth.

Headquarters Location

MFEX is headquartered in Stockholm, Sweden. The company has expanded its operations to include offices in several key financial hubs, including Paris, Luxembourg, London, Geneva, Kuala Lumpur, Milan, Madrid, Umea, Hong Kong, Singapore, and Zurich.

Global Business Scope

MFEX operates on a global scale, serving over 3,000 fund management companies and more than 2,000 fund distributors across 85 countries. The company administers approximately EUR 3.1 trillion in fund assets, making it one of the largest independent fund distribution platforms in Europe.

Main Regulatory Bodies

MFEX is primarily regulated by the Swedish Financial Supervisory Authority (Finansinspektionen). The company adheres to various regulatory standards to ensure compliance and transparency in its operations.

Back to top

2. Company History and Development

Key Milestones

• 1999: Foundation of MFEX in Sweden.
• 2005: Expansion into Europe with the signing of its first client in Belgium.
• 2006: Establishment of the Paris office to serve the French market.
• 2015: Partnership with Société Générale for rebates collection services.
• 2017: Establishment of Euroclear Global Watch in Sweden and opening of a new office in Italy.
• 2018: Acquisition of Axeltis (Natixis Group) in France and Ahorro in Spain, leading to the opening of a Madrid office.
• 2019: Acquisition of RBC's Global Fund Platform and new offices in London, Luxembourg, and Malaysia.
• 2021: MFEX joined the Euroclear Group, rebranding as MFEX by Euroclear.
• 2022: Expansion to Dublin with a new representative office.

Business Expansion Journey

MFEX has strategically expanded its presence in Europe and beyond, establishing offices in key financial centers and acquiring other companies to enhance its service offerings. This expansion has allowed MFEX to tap into new markets and better serve its clients.

Customer Base Growth

Since its inception, MFEX has significantly grown its customer base, now serving over 350 institutional clients, including banks and insurance companies. The platform provides access to a vast range of funds, with over 80,000 funds from more than 950 fund companies.

Platform Development History

MFEX has continuously developed its platform to provide comprehensive solutions for fund distribution. The platform includes services such as trading and custody, distribution agreements, rebate collection, data and fund information, and due diligence processes.

Important Awards or Recognitions Received

While specific awards were not detailed in the available information, MFEX is recognized as one of the largest European independent experts in global fund distribution, highlighting its industry standing.

Back to top

3. Trading Services Offered

Forex Trading Options

MFEX primarily focuses on mutual fund distribution rather than direct forex trading. However, through its partnerships and services, clients may access various financial instruments, including currency pairs.

Stock Trading Options

MFEX does not directly offer stock trading services, as its primary business model revolves around fund distribution. Clients can access a diverse range of mutual funds, which may include equity funds that invest in stocks.

CFD Trading Products

The information provided does not specify if MFEX offers Contracts for Difference (CFDs). The company's focus is on mutual fund distribution, which may not typically include CFD products.

Other Financial Instruments

MFEX provides access to a wide array of mutual funds, including those that invest in various asset classes such as equities, fixed income, and alternative investments. The platform may also facilitate access to private funds through its acquisition of Goji in 2022.

Special Services or Unique Advantages

MFEX offers several unique advantages, including:

• A comprehensive fund distribution platform that connects fund companies and distributors.
• Automated solutions for trading funds and custody services.
• Transparency in fund documentation and transactions.
• Due diligence services, including AML and KYC compliance through its Global Fund Watch initiative.

Back to top

4. Regulatory and Legal Background

Detailed Regulatory Information

MFEX is regulated by the following bodies:

• Swedish Financial Supervisory Authority (Finansinspektionen)
• Other regulatory authorities applicable in the jurisdictions where it operates.

Legal Entity Structure by Region

MFEX operates as a single legal entity, MFEX Mutual Funds Exchange AB, with branches and offices in various countries to facilitate its global operations.

Client Fund Protection Measures

MFEX implements robust client fund protection measures, ensuring compliance with regulatory requirements and safeguarding client assets. The specific measures may include segregation of client funds and adherence to local regulations.

Countries/Regions Served

MFEX serves clients in over 85 countries worldwide, providing a global reach that enables fund distributors and management companies to access a vast array of investment products.

Compliance History

MFEX has maintained a strong compliance record, adhering to the regulatory standards set by the Swedish Financial Supervisory Authority and other relevant bodies in the jurisdictions it operates.

Back to top

5. Competitive Landscape

3-5 Main Competitors

1. Allfunds: A leading B2B fund distribution platform that offers similar services to MFEX.
2. Clearstream: Provides post-trade services and fund distribution solutions.
3. BNP Paribas Securities Services: Offers fund administration and distribution services.
4. Citco: Provides fund services and administration solutions.

Positioning in the Industry

MFEX is positioned as one of the largest independent fund distribution platforms in Europe, focusing on transparency and open architecture. Its acquisition by Euroclear has further solidified its standing in the industry.

Market Differentiation Factors

MFEX differentiates itself through:

• A strong emphasis on transparency and regulatory compliance.
• A comprehensive range of services that cater to both fund management companies and distributors.
• A global presence with local expertise, enabling it to serve clients effectively across different regions.
• Continuous investment in technology to enhance its platform and service offerings.

Back to top

In conclusion, MFEX has established itself as a key player in the global fund distribution landscape. With a solid foundation, strategic acquisitions, and a commitment to transparency and compliance, the company is well-positioned for continued growth in the evolving financial services industry. For more detailed information about MFEX and its services, learn more.