Clear Street Acquires Fox River to Boost Algo Trading

Clear Street, a cutting-edge financial technology firm, has reached a definitive agreement to acquire the Fox River algorithmic trading business from Instinet. This strategic move is designed to bolster Clear Streets algorithmic trading capabilities, especially in US and Canadian equities.

Fox River offers a wide range of algorithmic execution solutions tailored to both buy and sell-side firms, including many prominent quant-driven funds. This acquisition aligns with Clear Streets goal to enhance its product lineup and provide advanced trading solutions to its clients.

Chris Pento, CEO and Co-Founder of Clear Street, emphasized that Fox River‘s top-tier algorithmic trading capabilities will become a vital addition to Clear Street’s value proposition. He highlighted Fox River‘s renowned high-performance algorithms, superior client service, and adaptable platform, which have established a loyal customer base. Pento is confident that this acquisition will strengthen Clear Street’s suite of products, particularly for quantitatively focused clients, and expressed enthusiasm for welcoming the Fox River team to Clear Street.

Gerry Milligan, President and Head of the Americas at Instinet, remarked on the mutual advantages of the deal. Milligan pointed out that the transaction would enable Instinet to streamline its Execution Services and concentrate its investments on its core Algorithmic platform. He also noted that Fox River‘s platform would complement Clear Street’s product offerings effectively.

The integration of Fox River into Clear Street‘s existing operations is expected to enhance the firm’s cloud-native prime brokerage platform and boost its electronic trading capabilities. This strategic initiative aims to provide Clear Streets clients with a more comprehensive and robust trading experience.

Clear Street Investment Banking is advising on the transaction, which is projected to close in the third quarter of 2024, subject to customary closing conditions. Financial details of the deal were not disclosed.

This acquisition represents a pivotal step for Clear Street in expanding its technological and service capabilities within the financial technology sector. By incorporating Fox Rivers algorithmic trading solutions, Clear Street seeks to fortify its position as a leading provider of innovative trading solutions, addressing the needs of quantitatively focused clients and enhancing its competitive edge in the market.