Acquisition enables Clearpool to accelerate the development of its electronic trading solutions for the modern market microstructure across multiple asset classes and regions
NEW YORK / ACCESSWIRE / January 22, 2020 / Clearpool Group (Clearpool), a New York-based provider of holistic electronic trading solutions and an independent agency broker-dealer, today announced that it has entered into a definitive agreement to be acquired by BMO Financial Group (NYSE, TSX: BMO). The transaction is subject to receipt of required regulatory approval and other customary conditions and is currently expected to close in the second quarter. Terms of the transaction were not disclosed.
Founded in 2014, Clearpool has approximately 60 employees and over 100 clients, primarily U.S. broker dealers who utilize the company’s trading technology and execution services. Its Algorithmic Management System (AMS) provides a fully customizable suite of algorithmic trading tools designed to service the best execution needs of institutional clients. Clearpool is a 2019 Waters Rankings Winner – Best Algorithmic Trading Provider and a recipient of the 2019 Markets Choice Awards – Best Algorithmic Trading Company.
“We are thrilled to be joining BMO Capital Markets,” said Joseph Wald, CEO 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.”
As part of this strategic acquisition, BMO is dedicated to Clearpool Group’s continued effort in developing new trading solutions for current and future clients. Clearpool clients will maintain access to the technology and open architecture platform as they continue to evolve their differentiated trading offering. Clearpool will remain an independent offering with information barriers to secure client’s confidential information.
“BMO Capital Markets 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,” said Dan Barclay, CEO, BMO Capital Markets. “The acquisition of Clearpool is consistent with these priorities as gives us access to leading next-gen trading technology and a broker-dealer client base.”
“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, BMO Capital Markets. “We are committed to maintaining those principles.”
BMO has acquired Clearpool for not only its cutting-edge trading technology, but for the talented team who helped create and deliver it to clients.
“We would like to express our deep gratitude to our employees, clients and advocates who continue to share our vision of transparency and collaborative trading solutions. We look forward to continue supporting our clients in evolving their differentiated trading solutions,” added Wald.
In connection with the transaction, BMO Capital Markets acted as financial advisor and Debevoise & Plimpton LLP and Osler, Hoskin & Harcourt LLP acted as legal counsel to BMO. Financial Technology Partners acted as financial advisor and Morgan, Lewis, & Bockius LLP, Murphy & McGonigle and Stikeman Elliott LLP acted as legal counsel to Clearpool.
Launched in 2014 and based in New York, Clearpool Group, Inc. offers holistic electronic trading solutions and provides independent agency broker-dealer execution services. With over 100 Algorithmic Management System (AMS) clients and executing approximately 2% of the US equity market volume, Clearpool empowers market participants to achieve better quality execution in an evolving equity market microstructure and competitive landscape.
BMO Capital Markets is leading, full-service North American-based financial services provider offering corporate, institutional and government clients access to a complete range of products and services including equity and debt underwriting, corporate lending and project financing, mergers and acquisitions advisory services, securitization, treasury management, market risk management, debt and equity research and institutional sales and trading. With approximately 2,700 professionals in 33 locations around the world, including 19 offices in North America, BMO Capital Markets works proactively with clients to provide innovative and integrated financial solutions.
BMO Capital Markets is a member of BMO Financial Group (NYSE, TSX: BMO) one of the largest diversified financial services providers in North America with $825 billion assets as at October 31, 2019