The acquisition brings a modern, cloud-based electronic trading platform with visual data analytics and customisable algorithmic strategies to BMO
Bank of Montreal (BMO Financial Group) has agreed to acquire Clearpool Group, a New York-based electronic trading solutions provider, for an undisclosed amount.
The deal is expected to add new capabilities to BMO’s electronic trading platform.
Clearpool operates both in the US and Canada. Subject to regulatory approvals and customary closing conditions, the deal is expected to be closed in the second quarter of this year.
The acquisition is part of BMO’s efforts to deliver an electronic trading platform to its global clientele, as more and more equity trading shifts towards electronic trading platform.
BMO Capital Markets CEO Dan Barclay said: “BMO Capital Markets is accelerating on our strategic priorities of delivering exceptional client-experiences, driving an innovation mindset, activating a high performance culture and simplifying how we do business.
“The acquisition of Clearpool is consistent with these priorities as it gives us access to leading next-gen trading technology and a broker-dealer client base.”
Clearpool was established in 2014 and it has a staff of 60. Its trading technology and execution services are used by more than 100 broker dealer clients, primarily in the US.
Its algorithmic management system (AMS) is claimed to offer a fully customisable suite of algorithmic trading tools designed to service the execution needs of institutional clients.
Clearpool will function separately after the deal is closed
Upon the deal’s closure, Clearpool will function as a separate broker-dealer with information barriers to protect the confidential information of its clients.
The Canadian bank will also support Clearpool’s effort in developing new trading solutions for its current and future clients. Clearpool’s clients will continue accessing to the technology and open architecture platform..
Clearpool CEO and co-founder Joseph Wald said: “We are very excited to join BMO. The acquisition positions us well to accelerate the next step in our platform development and provide the infrastructure to become a global, multi-asset class electronic trading solution.
“None of this would be possible without our employees, clients, and advocates who continue to shape our vision of transparency and collaborative trading solutions.”