Today: Jun 14, 2024

Trading Technologies dominates with Clearing Technologies and ATEO acquisition.

4 months ago

TLDR

Trading Technologies International has announced its plan to acquire ATEO SAS, a provider of post-trade solutions for listed derivatives. The acquisition will expand TT’s reach into clearing and other middle-office technologies and services. The terms of the transaction have not been disclosed, but it is expected to close on February 29.

Key Points:

  • Trading Technologies International (TT) will acquire ATEO SAS, a provider of post-trade solutions for listed derivatives.
  • The acquisition will expand TT’s reach into clearing and other middle-office technologies and services.
  • ATEO’s full line of middle-office solutions will be integrated into TT’s infrastructure.
  • TT and ATEO entered into a strategic partnership in late 2022 to deliver a fully integrated post-trade allocation service for sell-side banks, brokers, and futures commission merchants.
  • The total addressable market for middle-office clearing solutions is estimated to be at least $100 million.

Chicago-based Trading Technologies International (TT) has announced its plan to acquire ATEO SAS, a provider of post-trade solutions for listed derivatives. The acquisition will expand TT’s reach into clearing and other middle-office technologies and services. The terms of the transaction have not been disclosed, but the deal is expected to close on February 29.

TT and ATEO have been working together since 2022 through a strategic partnership to deliver a fully integrated post-trade allocation service for sell-side banks, brokers, and futures commission merchants (FCMs). With the acquisition, ATEO’s full line of middle-office solutions will be integrated into TT’s infrastructure. This includes ATEO’s TEO Derivatives, a global order management system used by many inter-dealer and executing brokers in London, and the LISA Clearing Engine, a widely adopted trade matching and clearing solution. The acquisition will also provide TT’s clients with seamless access to ATEO’s functionality.

The total addressable market for middle-office clearing solutions is estimated to be at least $100 million, with plenty of room for market share growth. TT CEO Keith Todd expressed his confidence in the acquisition, stating that it will create a stronger value proposition and end-to-end offering for clients. ATEO CEO Laurent Courbin also expressed excitement about the acquisition, noting that it will allow the company to scale significantly and support more clients of every size.

As part of the integration, ATEO will operate as a global managed service hosted in TT’s data centers. ATEO’s post-trade allocation engine is already fully integrated into TT’s order management system (OMS), providing seamless access to the functionality for TT OMS clients. ATEO’s products also include UGO, a set of gateways and standardized clearing APIs that enable firms to develop or feed in-house solutions through scalable trade feed standardization and high throughput for all clearing activities.

Trading Technologies (TT) is a global capital markets technology platform provider that offers a SaaS-based platform to the financial industry. The company connects to major international exchanges and liquidity venues and delivers advanced tools for trade execution, order management, market data solutions, analytics, risk management, and infrastructure services. ATEO delivers post-trade solutions for the financial industry, including a global blotter, clearing and matching system, and market connectivity.