The Fox River suite consists of algorithmic execution solutions for U.S. and Canadian equity transactions.
Brokerage firm Clear Street, which leverages cloud-native, financial technology, has acquired the Fox River algorithmic trading business of brokerage Instinet, which only two years ago purchased the group from FIS.
In October 2023, Instinet completed the purchase of the FIS Execution Services business, previously known as Fox River, from FIS. The original purchase agreement was announced on June 8, 2022, according to Instinet.
The Fox River suite consists of algorithmic execution solutions for U.S. and Canadian equity transactions.
“Fox River ultimately will be integrated into Clear Street’s existing business, complementing the firm’s cloud-native prime brokerage platform, enhancing the company’s electronic trading capabilities,” according to the Clear Street announcement.
The Fox River offerings “cater to buy and sell-side firms, including many of the industry’s leading quant-driven funds,” according to Clear Street.
“Fox River has a longstanding and loyal client base, built on proven and respected products and services,” says Chris Pento, CEO and co-founder of Clear Street, in a prepared statement. “This transaction further bolsters our suite of products tailored toward quantitatively focused clients.”
The transaction will lead to clear benefits for Clear Street and Instinet, says Gerry Milligan, president and head of the Americas, Instinet, in a statement.
“It allows Instinet to streamline our existing execution services offering and continue to concentrate our investment efforts on our core algorithmic platform. Additionally, we believe that the Fox River platform will be a great complement to Clear Street’s product suite,” Milligan says.
Clear Street Investment Banking advised Clear Street on the transaction, which is expected to close during the third quarter of 2024, officials say. The firms involved declined to disclose the financial terms of the transaction.
Part of Clear Street’s mission is to modernize the brokerage ecosystem by replacing the legacy infrastructure used across capital markets, officials say. The firm has developed a cloud-native clearing and custody system.
Instinet offers agency-model brokerage services to institutional clients and is the wholly-owned execution services arm of Nomura Group, officials say.
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