Deutsche Börse is acquiring a majority interest in Quantitative Brokers, an independent provider of advanced execution algorithms and data-driven analytics for global futures, options and interest rate markets.
The transaction will move Deutsche Börse closer to the sources of trading interest in the buyside value chain, accelerating buyside product adoption and order flow attraction in the exchange traded derivatives space.
The fintech company, which has operations in New York, London, Sydney and Chennai, portfolio of algorithms, simulation tools and analytics is used by some of the world’s largest institutional investors. It is expected to report $25m in revenues this year.
Quantitative Brokers will be majority owned by Deutsche Börse, with the founders retaining significant portions of their shareholdings and continuing in their respective roles. Christian Hauff will remain CEO and Robert Almgren will be chief scientist.
Thomas Book, head of the trading & clearing division of Deutsche Börse and member of the Executive Board said, “We are investing in a growth business with a renowned, innovative and leading quant team delivering a unique set of competencies in algorithmic execution. The exciting QB platform and team are a perfect fit with both our existing business and our long-term strategic perspective.”
Hauff added that the QB team is excited to join “Deutsche Börse’s portfolio of strategic companies to further accelerate our institutional client uptake and global expansion across markets and asset classes. Our partnership with a $30 bn-dollar, global, multi-asset exchange group will provide even greater momentum to our growth plans.”
The transaction is expected to be completed by the end of this year, with the closing date remaining contingent on required regulatory approvals. Specific terms of the transaction were not disclosed.