ConvergEx, a US agency brokerage and financial technology provider, has agreed to buy the US Transaction Services division of trading technology firm NYFIX, which includes the Millennium dark pool.
In addition to Millennium, NYFIX’s Transaction Services division includes direct market access capabilities and algorithmic products. The deal depends on the conclusion of the sale of NYFIX to NYSE Technologies, the technology subsidiary of exchange group NYSE Euronext, which is expected before the end of the year.
Once the deal has been finalised, Millennium will become ConvergEx’s third in-house alternative trading system (ATS) and will be independently operated alongside the broker’s VortEx ‘streaming’ ATS – where streaming and resting orders interact with indications of interest from external liquidity providers – and its ConvergEx Cross dark block trading platform.
“ConvergEx believes in the many benefits of non-displayed liquidity for all market participants and supports efforts being taken to promote more transparency in this rapidly evolving and important space. ATSs encourage competition and improve overall execution quality by reducing information leakage, market impact and execution expenses,” said Carey S. Pack, chief executive officer of ConvergEx Execution Solutions, in a statement. “In addition, because different execution venues attract unique types of liquidity, ConvergEx believes that it is a benefit to clients to offer numerous sources of in-house liquidity.”
Brian Carr, head of NYFIX’s US Transaction Services business, will continue to run the day-to-day operations of the business after the acquisition.
“ConvergEx understands the value of giving its customers a variety of customisable tools and access to distinct destinations to achieve best execution,” said Carr. “We are truly excited about this venture and look forward to working side by side with the ConvergEx team.”