Trading Technologies acquires ATEO SAS to expand clearing business

Chicago-based trading software provider, Trading Technologies International, Inc. (TT), is set to acquire ATEO SAS, a developer of post-trade solutions for listed derivatives. The deal is expected to close by the end of February and aims to expand TT’s portfolio with clearing and middle-office technologies and services.

This acquisition builds on a strategic partnership signed in late 2022 between TT and ATEO, which focused on developing a fully integrated post-trade allocation service.

While the financial terms of the deal remain undisclosed, the acquisition complements TT’s offerings, particularly in the sell-side post-trade allocation service domain. Post-acquisition, ATEO is set to operate as a managed service within TT’s data centers, with its post-trade allocation engine already integrated into TT’s order management system (OMS).

“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,” said Trading Technologies CEO Keith Todd.

“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,” he added.

Trading Technologies has been actively pursuing growth through acquisitions to diversify its business lines and service offerings. This includes the acquisition of Abel Noser’s buy-side Transaction Cost Analysis (TCA) subsidiary in August 2023. Furthermore, TT launched two new business lines in December – TT Compliance and TT Quantitative Trading Solutions (QTS) – as part of its strategy to drive growth in 2024 across various asset classes.

“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,” said David Romeo, managing director of ATEO.

The TT platform provides market access and trade execution through the software-as-a-service (SaaS) delivery model. In addition, the solution provides access to major international exchanges and liquidity platforms. The platform already serves a wide variety of users, including proprietary traders, brokers, money managers, CTAs, hedge funds, commercial hedgers, and risk managers.

Earlier in June, Trading Technologies unveiled a new venture called TT FX, marking its entry into the foreign exchange (FX) sector. This expansion into a new asset class comes after TT’s acquisition of AxeTrading, a provider of fixed income trading solutions in March.

The newly established TT FX unit is led by Tomo Tokuyama, who held the position of Head of Trading at First Quadrant, a quantitative fund based in Los Angeles.