REDI Completes InstaQuote Acquisition
REDI Global Technologies, a company that was spun off from Goldman Sachs together with its REDIplus execution management system, is nearing the end of its first year of operations by integrating InstaQuote, an EMS it acquired from Bank of America Merrill Lynch as part of BaML’s equity investment in REDI.
“The basic thesis behind the spinoff of REDI is that the industry is consolidating around core competencies because of cost pressures and regulatory compliance,” said Rishi Nangalia, CEO of REDI Global Technologies. “REDI was better positioned as a standalone company to serve the financial community, including Goldman.”
Clients of InstaQuote have been fully migrated to REDIPlus, increasing the firm’s client base and necessitating growth of platform capabilities. REDIPlus now offers a suite of middle- office services, including deeper integration with a number of clearing and prime brokers and expanded risk management capabilities.
“Clients can route to any bulge bracket broker. Every major broker is connected to REDI and is live across equities, options and futures,” said Nangalia. “Nearly a dozen back offices of prime brokers are now integrated with REDI, and we have added 20% to our client base.”
Josh Schubkegel, REDI’s chief technology officer, said the acquisition of InstaQuote expands REDI’s footprint across the trading lifecycle. “We have brought InstaQuote applications and infrastructure in house,” he said. “We have built a set of services, APIs and a software development kit to allow integration with any broker or third party vendor.”
REDI’s business model fits in nicely with the trend among capital markets firms to focus on core competencies. “Our customers’ core competency is trading, stock selection and risk management; they are not in the software business,” Nangalia said. “They are looking for us to provide solutions that provide the same experience as if they built own technology.”
REDI board member Bina Kalola, head of global equities strategic direct investments at BofA Merrill Lynch, said in a statement: “Through the integration of InstaQuote, REDI is transforming electronic trading for the benefit of all market participants. We recognize the industry’s needs are changing, which further underscores the value of a broker-neutral platform like REDIPlus. As the industry evolves, we expect REDI to play a significant role in the consolidation of EMS platforms.”
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