Marex completes acquisition of TD Cowen’s PB business

London-headquartered commodities broker Marex has completed the acquisition of TD Cowen’s prime brokerage and outsourced trading business, which will be integrated into Marex’s capital market division. This division was established following the acquisition of ED&F Man Capital Markets in 2022.

The acquisition incorporates approximately 160 staff members from the Cowen business, who are spread across eight international offices. The deal also includes the transfer of all clearing counterparties, as well as trading and reporting technologies associated with the business.

Jack Seibald and Mike Rosen, who have led the business since its early days in the mid-1990s and continued through its sale to Cowen in 2015, will maintain their leadership roles. In their new positions at Marex, Seibald and Rosen will serve as Global Co-Heads of Prime Brokerage Services and Outsourced Trading and have been named to Marex’s Management Executive Committee.

The exact financial details of the acquisition have not been disclosed, but TD Bank Group acquired the business in March in an all-cash $1.3 billion deal.

Marex’s acquisition of TD Cowen’s prime brokerage and outsourced trading business adds capabilities to its market infrastructure, including multi-asset-class custody, execution, financing, security lending, and related technology solutions. The deal will also create an integrated dealer that will advance its growth strategy in North American through the addition of Cowen’s US equities sales trading, and execution, as well as research capabilities.

This move diversifies Marex’s business and extends its offering across asset classes. The acquired business will be integrated into Marex’s Capital Markets division and branded as Marex Prime Services and Marex Outsourced Trading.

Paolo Tonucci, CEO of Capital Markets at Marex, said: “Cowen’s prime brokerage and outsourced trading business is renowned for providing an exceptional global market leading service. This well-established business is an ideal addition to our Capital Markets division as we continue to diversify our offering, adding new products, services and asset class coverage. This acquisition bolsters Marex’s provision of essential market infrastructure that connects clients to markets and also creates opportunities to provide additional services to a new set of clients.”

The move comes shortly after Marex completed the acquisition of rival ED&F Man Capital Markets to boost its metals business and expand in fixed income and equities across the UK, US, the Middle East and Australia. It added that the integration is progressing well as the company onboarded over 400 former ED&F Man Capital Markets employees.

Marex said these deals represent a superb opportunity of corporate backing and consolidation with a worldwide growing leading player. It should therefore pave the way for future ambitious business development steps by benefiting from access to Marex’s global infrastructure and balance sheet.