Futures brokerage RJ O’Brien has acquired European derivatives clearing agent The Kyte Group from GFI Group, which decided the firm was not part of its “long-term strategic plan”.
The move comes after GFI Group was bought by interdealer broker BGC Partners, following a lengthy bidding process.
Kyte is a European derivatives clearing agent offering risk management, trade settlement and exchange connectivity via Direct Market Access to proprietary traders, brokers, market makers and hedge funds.
The firm is active in clearing volumes on major European futures markets Liffe, ICE Futures Europe and Eurex.
The move represents a strong commitment to RJO, a major US brokerage, to expand in Europe.
“We’ve made a strategic decision to expand significantly in the UK and Europe, and we are truly thrilled to bring Kyte’s impressive operation and talented team of high-caliber, seasoned employees into the RJO family,” said RJO chairman and chief executive officer, Gerald Corcoran.
“The acquisition will immediately add value, enabling us to accelerate our growth plans and to benefit from robust infrastructure enhancements in Europe that would have taken us several years to build from the ground up.”
David Mudie, CEO of RJO Europe’s regulated subsidiary will serve as CEO of the acquired entity. Long-time Kyte executive Thomas Texier will lead operations at both RJO UK subsidiaries and Peter Green, who has served as Kyte CEO, will stay on as a consultant and remain on the board as a non-executive director.
The deal is expected to close no later than 17 March. Terms of the transaction were not disclosed, though the agreement has received Financial Conduct Authority approval.
“We see tremendous synergies between the two organisations, and this is a fantastic opportunity for our respective clients and staff. We have a shared commitment to superior client service and strong relationships, and clients can expect continuity of service throughout and after the integration,” said Mudie.
“In addition to the many mutual benefits, Kyte clients can enjoy RJO’s vast reach, global clearing arrangements, extensive operations in North America as well as Asia, and 100-year history of excellence in the futures markets.”