Trading Technologies, a US-based provider of Software-as-a-Service (SaaS) solutions for capital markets firms, is set to acquire its partner, Ateo, and expand its reach into clearing technologies.
Founded in 2000, Ateo specialises in providing post-trade solutions, including post-trade allocation, clearing engine and APIs, for banks, brokers, dealers and the wider trading industry.
The French company has been engaged in a partnership with Trading Technologies since November 2022, a move which integrated its post-trade allocation engine with its partner’s order management system.
Expanding the partnership 14 months later, Trading Technologies – whose platform provides tools for trade execution, surveillance, risk management and infrastructure, among other areas – is set to take over Ateo in a deal it expects to complete by 29 February. Further details of the transaction have not been disclosed.
With this, Trading Technologies stands to benefit from full exposure to Ateo’s middle-office solutions, which it says it plans to operate as a “global managed service” hosted via its data centres.
Its statement on the deal reveals a specific interest in Ateo’s LISA Clearing Engine, which serves as a trade matching and clearing solution claiming to present firms the ability to “process business across all clearing houses globally and offer tailored services to their customers”.
Commenting on the acquisition, Keith Todd, CEO of Trading Technologies, claims the takeover will result in “an even stronger value proposition and end-to-end offering”, while enabling the Chicago-headquartered company to tap the total addressable market for middle-office clearing solutions valued at “at least $100 million”.
Trading Technologies has previously worked to bolster the scale of its offerings through its acquisitions of RCM-X, a provider of algorithmic execution strategies and quantitative trading products; AxeTrading, a provider of fixed income trading solutions; and most recently, Abel Noser Solutions, which offers pre-trade, real-time and post-trade transaction cost analysis products.
For Ateo, its founder and CEO, Laurent Courbin, says the buy-out will afford it “the ability to scale significantly as part of the TT team and infrastructure, supporting more clients of every size, regardless of the scope of their needs”.
Source: Fintech Futures
