Instinet has entered into a definitive agreement to purchase the BlockCross alternative trading system (ATS) from State Street.
BlockCross was developed to help clients trade large-in-size orders with post-trade activity, commission management and liquidity profile features.
The deal is intended to provide BlockCross users with continued access to State Street’s liquidity and to deploy Instinet’s trading services globally.
The BlockCross team at State Street will move to Instinet’s office in Boston upon completion of the acquisition.
Nick Bonn, global head of portfolio solutions for State Street Global Markets, explained the sale will allow State Street to focus on its transition management and agency brokerage services, “including continued support of brokerage clients that are also BlockCross subscribers”.
Jonathan Kellner, CEO of Instinet, said the addition of BlockCross creates a unique liquidity service to help clients in the pursuit of best execution.
Terms of the deal were disclosed, although it is expected to close in approximately 30-60 days, subject to closing conditions.