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 fintech company has operations in New York, London, Sydney and Chennai and its 2020 revenues are expected to be around $25 million. The parties expect to finalize the transaction by the end of this year. Specific terms of the transaction were not disclosed.
The company will be majority-owned by Deutsche Börse, with the founders retaining portions of their shareholdings and continuing in their respective roles; Christian Hauff will continue as CEO and Robert Almgren as chief scientist.
Christian Hauff, CEO and co-founder of Quantitative Brokers, said in a statement: “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.”
Quantitative Brokers’ portfolio of algorithms, simulation tools and analytics is used by some of the world’s largest institutional investors. QB’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 is expected accelerate buy side product adoption and order flow attraction. Quantitative Brokers’ quant team will complement Deutsche Börse’s drive to expand its data and analytics services.