Instinet LLC, the equity execution services arm of the Nomura Group, has signed a definitive agreement to acquire State Street’s BlockCross ATS, an SEC-registered alternative trading system (ATS) that operates in the US only.
The transaction is subject to the customary conditions and the companies anticipate closing within two months, after which BlockCross would become a business unit of Instinet LLC.
BlockCross, which will keep its current team after the acquisition, is an independent agency brokerage firm that combines buy and sell-side liquidity to provide a broad spectrum of block-sized trading opportunities.
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This transaction will augment the strengths of each company to create a unique liquidity offering helping clients pursue best execution.
Building on its existing connectivity relationships, the deal will allow BlockCross clients to retain their access to State Street’s liquidity. Further, the integration will leverage the strength of Instinet’s capabilities which provides greater speed and powerful workflow enhancements to deploy trading solutions world-wide.
Jonathan Kellner, CEO of Instinet Holdings Incorporated, commented: “The addition of the BlockCross ATS to the Instinet product suite creates a unique liquidity offering helping our clients’ pursuit of best execution. This acquisition is another milestone in Instinet’s history of delivering industry leading technology and execution services to the global market place.”
Nick Bonn, Global Head of Portfolio Solutions for State Street Global Markets, added: “This sale will allow us to focus on our core transition management and agency brokerage solutions and areas where we can add the most value for our clients, including continued support of brokerage clients that are also BlockCross subscribers.”