Move aims to boost deals with a host of banks
Intercontinental Exchange, Inc. (NYSE:ICE) has announced its acquisition of the American Financial Exchange (AFX).
An electronic exchange for direct lending and borrowing for American banks and financial institutions, AFX was formerly under the 7RIDGE banner, a private markets asset manager in financial technology. It operates the credit-sensitive American Interbank Offered Rate (AMERIBOR®), which is set daily based on unsecured interbank loans executed through a network of over 1,000 American banks and financial institutions across the country.
The acquisition, ICE stated, will boost its position in serving regional, midsize, community and minority-owned banks, complementing its existing mortgage technology network and global index business.
"AFX becoming part of ICE marks an extraordinary opportunity for AFX and we are confident that ICE's leadership will amplify AFX's success and its purpose to serve regional and local American banks by creating a transparent, robust and efficient interbank lending ecosystem," said 7RIDGE CEO Carsten Kengeter.
Meanwhile, ICE fixed income and data services president Christopher Edmonds said that AFX is a natural fit for ICE, noting how it complements its global index business and mortgage technology network.
"AFX's focus on regional, midsize, community and minority-owned banks covers many of the same customers ICE serves through our mortgage technology network. We look forward to continuing to serve this important market, delivering innovation and new product development made possible through the addition of AFX to our portfolio,” he added.
The acquisition is not expected to have a material impact on ICE's 2025 financial results or on ICE's deleveraging or capital return plans.
As of September 2024, ICE accounted for approximately $670 billion in AUM across passively managed products and approximately $2 trillion in AUM across active and passive strategies combined.
Will ICE’s new move spark more transparent and robust interbank lending? Share your thoughts below.
