Cloud-based technology firm Clear Street has announced plans to acquire an algorithmic execution solutions firm focusing on the US and Canadian equities. Clear Street has entered into an agreement to acquire Instinet's Fox River algorithmic trading business. This step aims to enhance the brokerage sector and offer solutions for buy-side and sell-side firms, especially quant-driven funds in the US and Canadian equities markets.

Focussing on Execution Services

Commenting about the acquisition plans, Gerry Milligan, the President and Head of the Americas at Instinet, said: “This transaction provides clear benefits to both firms. 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.”

Fox River will be integrated into Clear Street's existing business to enhance the firm's cloud-native prime brokerage platform. This integration seeks to improve Clear Street's electronic trading capabilities by offering a suite of products tailored to quantitatively focused clients.

According to the official statement, Clear Street Investment Banking advised the transaction, which is expected to close in Q3 2024, pending customary closing conditions. However, the financial terms are yet to be disclosed.

Founded in 2018, Clear Street has developed a cloud-native clearing and custody system designed to meet the demands of today's complex global markets. In December 2023, the company closed a third tranche of Series B funding from Prysm Capital, raising its Series B total to $685 million and valuing the firm at $2.1 billion.

Changes in the Firm's Top Executives

The announcement about the planned acquisition comes amid changes in Clear Street's management. Recently, the firm appointed Edward Tilly as President. Tilly transitioned to his new role at the firm following a decade-long tenure as Chief Executive Officer at CBOE Global Markets, during which he reportedly increased market capitalization from $2 billion to over $18 billion.

According to the official statement, his leadership was highlighted by moves such as the 2017 acquisition of BATS Global Markets and the launch of financial products such as zero-days-to-expiration options.

Tilly has experience managing a publicly traded company, Clear Street. In his new position, he is expected to partner with Chris Pento, Clear Street's Chief Executive Officer, to focus on the company's growth. He reports to Clear Street's Board of Directors.