BMO Financial Group is acquiring Clearpool Group, a New York-based provider of electronic trading solutions and an independent agency broker-dealer operating in the US and Canada.
The acquisition, for an undisclosed sum, is subject to regulatory approval and is expected to close in Q2 2020.
Clearpool has approximately 60 employees and more than 100 clients, primarily US broker-dealers that use trading technology and execution services.
Its Algorithmic Management System powers its broker-dealer customers’ algorithmic trading strategies and gives them the tools and insights they need to effectively collaborate with their buy-side clients and manage their proprietary trading technology at scale.
BMO Financial Group said the acquisition delivers “powerful new capabilities” for the electronic trading platform of its capital markets arm in North America.
Dan Barclay, chief executive officer of BMO Capital Markets, said the acquisition demonstrates that the organisations “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.”
Barclay said: “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.”
On closing, Clearpool will be a separate broker-dealer with information barriers to secure clients’ confidential information, according to BMO Financial Group
“Clearpool’s business was built on providing transparency and control to all market participants,” said Aine O’Flynn, managing director and head of global equity products at BMO Capital Markets. “We are committed to maintaining those principles.”
“We are very excited to join BMO,” said Joseph Wald, chief executive officer and co-founder of Clearpool. “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.”