Deutsche Börse Group has invested in MerQube, a rapidly growing US-based technology-led research and index firm specializing in the design and calculation of innovative rules-based investment strategies and passive solutions. Deutsche Börse Group is co-investing with private markets asset manager 7RIDGE. The investment in MerQube by Deutsche Börse Group amounts to US$15 million, representing a minority stake.
Since its launch in 2019, MerQube has specialized in designing and calculating a broad range of strategies, from sell-side indices for complex strategies, which serve as the underlying product for index derivatives and structured products, to defined outcome and volatility management, real-time and intraday indices, supporting flexible rebalancing schedules and advanced execution methodologies.
By investing in MerQube, Deutsche Börse Group is further strengthening its leadership in the index industry. MerQube’s focus on customized complex indices, its strong presence in the Americas, and its cloud-native SaaS index and self-indexing platforms make it highly complementary to Deutsche Börse Group’s established index business STOXX, part of ISS STOXX.
Christian Kromann, member of the Executive Board of Deutsche Börse Group, commented: “We are thrilled to invest in and partner with MerQube. The demand for customization, flexibility, and speed-to-market in index-linked investing has been accelerating. MerQube’s cutting-edge technology and innovative approach to indexing respond to this demand. We are convinced that by combining strengths with MerQube, we will be able to further drive true innovation in the indexing industry.”
Vinit Srivastava, CEO of MerQube, added: “We are thrilled to welcome our new investors, Deutsche Börse Group and 7RIDGE, as we accelerate delivery of our vision to close the fintech gap in passive investment. The partnership and trust provided by these two leading organizations will help us further our leadership in indexing for derivatives-based investing, bringing innovation and scale to complement our unique technology and deep understanding of the ecosystem.”