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Deutsche Börse buys Kneip in data management push

Deutsche BoerseDeutsche Börse is to acquire Luxembourg-based fund data firm Kneip as the German exchange looks to expand its data offerings and fund services.

Kneip was established in 1993 and has become a leading player in Luxembourg’s regulatory reporting market, managing investor disclosure for over 10,000 funds. It also manages 30% of EU-based fund ISINs – the 12-digit alphanumeric code used to uniquely identify securities.

The acquisition is intended to help Deutsche Börse establish a fund data hub operating out of Luxembourg.

Kneip will be integrated with Deutsche Börse’s existing fund services platforms, adding to the data and post-trade services provided by the exchange’s Clearstream business.

Philippe Seyll, head of investment fund services at Deutsche Börse Group, described the deal as “a unique opportunity to create a leading European fund data champion based in Luxembourg”.

Data management has become a focus for exchange groups looking to expand their offerings beyond trade execution.

London Stock Exchange paid $27 billion to acquire data and analytics firm Refinitiv in January 2021. It has since invested in UK fintech Finbourne, which owns investment data management platform Lusid.

Deutsche Börse has also made a number of acquisitions in the data and regtech space. In November 2020, it bought a majority stake in ESG data and analytics firm Institutional Shareholding Services (ISS). The previous year, the exchange created its own analytics business Qontigo, formed through the amalgamation of its STOXX and DAX index businesses, alongside risk analytics firm Axioma which was acquired in 2019 for $850 million.

Deutsche Borse has also recognised the demand among asset managers for regulatory reporting tools. In November 2021 it launched a service to help asset managers comply with the EU’s Central Securities Depositories Regulation around securities settlement.

The transaction, which will see Deutsche Börse acquire 100% of Kneip, is expected to be completed by the end of this month. Financial terms were not disclosed.

©2022 fundsTech

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