Trading Technologies International, Inc. (TT), a global capital markets technology platform provider, today announced a definitive agreement for TT to acquire ATEO SAS, a leading provider of post-trade solutions for listed derivatives, expanding TT's reach into clearing and other middle-office technologies and services.
Terms of the transaction, expected to close on Feb. 29, were not disclosed.
The two firms entered into a strategic partnership in late 2022 to deliver a fully integrated, comprehensive post-trade allocation service for sell-side banks, brokers and futures commission merchants (FCMs). The acquisition brings ATEO's full line of middle-office solutions into the TT infrastructure.
TT CEO Keith Todd said: "We've enjoyed an outstanding working relationship with the ATEO team since we embarked on our partnership in 2022, and we came to the conclusion that we can create an even stronger value proposition and end-to-end offering by bringing the entire firm and all software modules into the TT family of offerings. ATEO has both highly respected technology and established trusted relationships with a wide range of leading banks, brokerage firms, trading houses and professional traders. The total addressable market for middle-office clearing solutions is at least $100 million, with plenty of room for growth in market share."
Laurent Courbin, Founder & Chief Executive Officer of ATEO, said: "Since 2000, ATEO has provided premier middle-office solutions to our clients, with functionally rich and reliable software. While we have already attracted some of the leading firms in the industry, we now have the ability to scale significantly as part of the TT team and infrastructure, supporting more clients of every size, regardless of the scope of their needs."
David Romeo, Managing Director of ATEO, said: "This will also bring our existing clients and those in our pipeline easy access to the TT platform and the full range of services the firm provides. Giving our clients the ability to manage their trading activities from pre-trade risk to post-trade allocation and clearing through TT's multi-asset platform will provide a meaningful competitive advantage."
ATEO will operate as a global managed service hosted in TT's data centers. ATEO's post-trade allocation engine is already fully integrated into the TT order management system (OMS), providing TT OMS clients with seamless access to the functionality.
Among ATEO's products are: TEO Derivatives, a global order management system dedicated to pure brokerage environments and used by many of the world's leading inter-dealer and executing brokers, including the vast majority of brokers in London; the LISA Clearing Engine, a widely adopted trade matching and clearing solution enabling firms to process business across all clearing houses globally and offer tailored services to their customers; and UGO, a set of gateways and standardized clearing application programming interfaces (APIs) providing firms with the ability to develop or feed in-house solutions through scalable trade feed standardization and high throughput for all clearing activities.