(Bloomberg) -- Clear Street, an upstart brokerage-services provider that raised funding at $2.1 billion last year, has agreed to buy Instinet’s algorithmic trading business, Fox River.
The deal adds to Clear Street’s suite of products catering to traders who rely on computer modeling to identify opportunities, according to Chris Pento, co-founder and chief executive officer of Clear Street.
“If you’re a quantitative fund, you can bundle the execution capabilities with our existing prime brokerage capabilities,” Pento said in an interview Tuesday.
Financial terms of the transaction weren’t disclosed. Fox River, which provides algorithmic execution services for US and Canadian equities, will complement the firm’s prime-brokerage platform and add to its existing electronic trading services, Pento said. He expects the deal to close before the end of the year.
Founded in 2018, Clear Street aims to replace “legacy infrastructure used across capital markets” with a prime-brokerage platform that saves clients money and improves efficiency. In December it raised $685 million at a valuation of $2.1 billion.
The firm started in equities trading and has since expanded to options, fixed income and most recently the futures markets. Now, it’s looking to grow beyond the US, taking its market operations to Europe and Asia. It’s set out to achieve that goal by striking deals and recruiting high-profile talent.
Earlier this month, Clear Street announced that former Cboe Global Markets Inc CEO Ed Tilly was joining as president. In September, Clear Street tapped Morgan Stanley’s former head of prime brokerage technology, Jon Daplyn, as chief information officer.
©2024 Bloomberg L.P.
