Skandia and Hargreaves Lansdown have paid £8.3m between them to become shareholders in the electroni...
Skandia and Hargreaves Lansdown have paid £8.3m between them to become shareholders in the electronic trading platform, Emx, writes Kira Nickerson.
The two join six groups which in March this year paid £8.3m between them to rescue Emxco after its rights issue failed to raise the amount necessary for the company to continue. The target for the rights issue had been £8.5m but, at the time, the trading platform had only raised £6m.
The other major shareholders in the company, Fidelity, M&G, Scottish Widows, Standard Life, Invesco and Threadneedle, raised further capital but never revealed how large each company's share was, although no group holds more than 25%.
Although they have agreed to invest in Emxco, neither Skandia nor Hargreaves has agreed to use the system. Phil Wise, chief executive officer of Emx, said the company remains in talks with a number of fund supermarkets, including Fidelity FundsNetwork, but, as of yet, no one has signed up to the platform.
He said he understood most were close but were waiting to see improvements in the functionality of the system before committing. The additional capital will be use to help develop this functionality, working on areas of the system such as settlement, reconciliation of nominee accounts and improvements to the valuation side of Emx.
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