Deutsche Börse is acquiring a majority interest in Quantitative Brokers, an independent provider of advanced execution algorithms and data-driven analytics for futures, options and interest rate markets. The fintech company has operations in New York, London, Sydney and Chennai. Terms of the deal were not disclosed and the founders of QB are retaining “significant portions” of their shareholdings and continuing in their respective roles; Christian Hauff will continue as CEO and Robert Almgren as chief scientist.
Quantitative Brokers’ portfolio of algorithms, simulation tools and analytics is used by some of the world’s largest institutional investors, Deutsche Borse says, adding the firm’s offering services the increasing demand for intelligent and transparent solutions to manage execution cost and performance via a broker-neutral workflow. The QB algorithms are engineered for both central limit order books and OTC liquidity streams while accessible via all major execution and order management systems used by the buy side, banks and brokerage houses.
The transaction will move Deutsche Börse closer to the sources of trading interest in the buy side value chain, contributing to the Trading & Clearing division’s buy side focused growth initiatives. In the Exchange Traded Derivatives segment, it will accelerate buy side product adoption and order flow attraction, the exchange group says, adding its quant team will complement Deutsche Börse’s drive to expand its data and analytics services.
Thomas Book, head of the trading & clearing division of Deutsche Börse and member of the executive board, says, “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 adds, “The QB team is thrilled 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 billion-dollar, global, multi-asset exchange group will provide even greater momentum to our growth plans.”
Almgren says, “Deutsche Börse’s global relationships with buy and sell side customers will help us add value to an even broader range of clients. Our intelligent solutions will provide them with additional tools to better manage order execution in an increasingly complex market environment.”
Quantitative Brokers’ 2020 revenues are expected to be around $25 million and Deutsche Borse says besides further double-digit revenue growth at the firm, the combined business is expected to deliver significant synergies.