Nomura’s Instinet to Acquire FIS Execution Services

Instinet Holdings Incorporated, a US-based subsidiary of Nomura Group, confirmed that it is purchasing the algorithmic trading business of FIS. The two companies have already entered into an agreement for the deal.

Announced on Wednesday, FIS Execution Services is an agency-focused broker. It provides customized algorithms and helps clients improve execution quality, minimize information leakage and decrease execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term costs.

Under the agreement, Instinet will acquire assets of FIS Execution Services that will include algorithmic trading technology and intellectual property. In addition, it will absorb the staff of the algorithm trading business. However, neither of the companies has disclosed the financial terms of the deal.

“We’re very excited to bring FIS Execution Services into Instinet’s legendary agency business,” said Ralston Roberts, the Global CEO of Instinet.

“There is tremendous alignment between our mission and theirs: we both are intensely focused on our clients’ execution performance quality. And, we both use quantitative research and advanced technology to drive efficiencies and lower trading costs.”

He further said that the services of the two platforms are complementary, and their combination will only benefit the collective clients.

An Established Business

Based in Geneva, a city in the US state of Illinois, the algorithmic trading business was founded in 2000 and was acquired by FIS in 2015. The company provides its execution solutions to buy-side and sell-side Sell-Side Those in the financial industry involved with the production, marketing, and the sale of bonds, forex, stocks, and other financial instruments constitute the sell-side.Products and services produced by the sell-side are geared towards those who on the buy-side. You can think of the sell-side and buy-side like a coin, you cannot have one side without the other. The sell-side is comprised of individuals, firms, fintech companies, and market makers, who are responsible for providing liquidity in th Those in the financial industry involved with the production, marketing, and the sale of bonds, forex, stocks, and other financial instruments constitute the sell-side.Products and services produced by the sell-side are geared towards those who on the buy-side. You can think of the sell-side and buy-side like a coin, you cannot have one side without the other. The sell-side is comprised of individuals, firms, fintech companies, and market makers, who are responsible for providing liquidity in th Read this Term firms and quant-driven funds.

“It’s not an easy decision to divest a business that has the depth of skills and reputation our FIS Execution Services team has earned,” said Nasser Khodri, the Head of FIS Capital Markets. “But after extensive analysis, we felt that the synergies our algorithmic trading business would have with a global, highly scalable platform like Instinet’s were very compelling.”