Cantor Fitzgerald Partners is to acquire Municipal Partners, a New York based broker-dealer specialising in the brokerage of US municipal bonds. Cantor Fitzgerald plans to use the eSpeed electronic trading platform to issue MPI Class A Common Stock to facilitate the transaction and as an incentive to migrate more business to its eSpeed subsidiary.
Frederick Varacchi, eSpeed president and COO says: "We believe by aiding in the execution of this strategic acquisition we, together with Cantor Fitzgerald, will create a stronger presence in the municipal bond market and will advance our plan to migrate the Cantor Fitzgerald municipal bond business to the eSpeed system."
Municipal Partners currently has offices in New York, Los Angeles and Boca Raton. The staff in New York and Los Angeles are expected to relocate to Cantor Fitzgerald's offices in those cities. The office in Florida will continue to operate in its present location.
The eSpeed private network currently transacts over $150 billion of fixed income instruments daily.