Trading Technologies (TT) has moved into the multi-asset data and analytics space with an agreement to acquire Abel Noser Solutions (ANS), a provider of transaction cost analysis (TCA), from Abel Noser Holdings for an undisclosed sum. Speaking to BEST EXECUTION, TT CEO Keith Todd said the acquisition of Abel Noser reflects the importance of data and analytics in the marketplace and to TT’s strategy.
The deal, expected to close on 31 August, extends TT’s venture into new asset classes following the establishment of foreign exchange business TT FX and the acquisition of AxeTrading in March. TT will also acquire START, a broker-neutral trade optimisation platform, from Abel Noser in a second transaction expected to close by Q1 2024.
“Data and analytics is multifaceted, it has an influence on the post trade for best execution, it has influence in terms of broker performance and even has an influence on how trading is done,” Todd told Best Execution.
Todd said the firm always intended to consolidate its position in derivatives and then move into other asset classes, with data and analytics an important step in the multi-asset class expansion journey.
“Therefore, from the very early days it was clear that acquiring Abel Noser was going to be a material move for the company that ticked a number of boxes; multi-asset class, data and analytics, and a very strong buy side presence.
“Abel Noser has been around for a number of years, actually longer than TT, and in this acquisition, we are bringing together some really mature experience in the TCA world.”
Todd highlighted Abel Noser’s strengths in equities and fixed income, with emerging FX, and futures and options and, of course, TCA. All of which are very complementary to TT, which excels in futures and options, but has had less focus in those other marketplaces, Todd said. “So, this is a really important acquisition for us, and we’re pleased to have been able to announce it today.”
Todd said TT’s share of the exchange traded derivatives (ETD) market today is statistically relevant in every market that TT supports, and the acquisition of Abel Noser will support a yet-to-be-disclosed data and analytics offering that will leverage that data to provide market participants with new, unique insights.
START is an algo-based business focused on the equities marketplace, complementary to TT’s work with algo use within derivatives and emerging in fixed income and FX. A TT spokesperson told GT: “START is a customisable execution algorithm solution, with an emphasis on US equities, that dynamically integrates with client TCA data so the totality of a user’s data creates algorithms that are transparent, controllable, performance-centric and broker-neutral.”
Todd said the reason for the two-part acquisition is due to the START business operating on a commercial model which is governed by SEC regulations. “TT has to establish a broker-dealer regulatory vehicle to be able to acquire START so this arrangement is all about the execution, and appropriately following the regulatory path to get the approval in place before we can transition that business,” Todd explained.
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