LONDON, UK: Aquis Exchange PLC, a London-based exchange services company, announced on Monday that it has acquired a minority stake in OptimX Markets Inc, a US-based financial services start-up focused on the block trading market.

The investment was made as part of a consortium that also includes DB1 Ventures, the venture capital arm of Deutsche Boerse Group.

Block trading is a method of trading large quantities of securities that are not publicly disclosed, typically through private negotiations or dark pools. OptimX, founded by David Barnett, a former managing director at Goldman Sachs, aims to offer a new technology platform that will enable investment banks, brokers and institutions to find additional matches for their order flow and execute large trades more efficiently.

Aquis Exchange, which operates a pan-European cash equities trading platform and provides market data and analytics services, said that it will work closely with OptimX in the UK and EU to combine its market-leading technology platform with the OptimX technology suite. This initiative will further expand the product suite available to Aquis members and reinforce the innovative approach Aquis brings to capital markets.

The investment is split into two tranches: Aquis will subscribe USD750,000 out of a total first tranche of USD3.0 million, payable in cash, followed by a second tranche in 12 months of a further USD750,000 out of a total USD3.0 million, payable in cash. The pre-money valuation of the first tranche was USD10 million and the valuation for the second tranche will be finalised at the date of investment.

It is expected that Jonathan Clelland, the chief operating officer of Aquis, will join the board of OptimX as a non-executive director in due course. OptimX is a new venture and so has not yet generated any profits or losses.

Aquis CEO Alasdair Haynes said: “The investment in OptimX is a significant opportunity for Aquis, adding additional connectivity to our successful dark pool (the Aquis Matching Pool) and providing clients with the ability to cross large blocks. This alongside Aquis’s growing functionality will further enhance the range of execution options available to our members.”

The news of the investment was well received by the market, as Aquis Exchange shares rose 1.2% to 387.00 pence each in London on Monday afternoon.

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