Trading Technologies has moved to expand into clearing technologies with the acquisition of listed derivatives post-trade solutions provider ATEO SAS.
Terms of the deal were not disclosed. It is expected to close at the end of February.
The deal builds on an existing strategic partnership announced by the pair in late 2022 and is designed to deliver a post-trade allocation service to the sell-side.
Following completion, ATEO will operate as a managed service hosted in TT’s data centres. Trading Technologies confirmed that the ATEO post-trade allocation engine is fully integrated into the TT order management system (OMS).
“We’ve enjoyed an outstanding working relationship with the ATEO team since we embarked on our partnership in 2022, and we came to the conclusion that we can create an even stronger value proposition and end-to-end offering by bringing the entire firm and all software modules into the TT family of offerings,” said Trading Technologies CEO Keith Todd in a statement.
“ATEO has both highly respected technology and established trusted relationships with a wide range of leading banks, brokerage firms, trading houses and professional traders. The total addressable market for middle-office clearing solutions is at least $100 million, with plenty of room for growth in market share.”
Trading Technologies has made several acquisitions in recent years in a bid to grow inorganically and expand into new business lines. In August last year, the firm acquired Abel Noser’s buy-side TCA subsidiary.
It later announced in December plans to launch two new business lines – TT Compliance and TT Quantitative Trading Solutions (QTS) – to fuel growth for 2024 across asset classes.
“Giving our clients the ability to manage their trading activities from pre-trade risk to post-trade allocation and clearing through TT’s multi-asset platform will provide a meaningful competitive advantage,” said David Romeo, managing director of ATEO.