Nomura’s Instinet to acquire the FIS algorithmic trading business
- FIS Execution Services team is known for building highly customizable strategies by quants, for quants
- The deal is pending a green light from the regulators and is expected to close later this year
Instinet and FIS Execution Sevices, formerly known as “Fox River,” entered into an agreement. Nomura’s subsidiary will acquire the agency-focused broker specialized in providing customized algorithms that improve execution quality, minimize information leakage and optimize execution costs. Essential FIS’s products also include Direct Market Access and Sales Trading.
According to Ralston Roberts, Global CEO of Instinet, there is tremendous alignment between the two companies’ missions as both are intensely focused on their client’s execution performance quality. Both Instinet and FIS Execution Services use quantitative research and advanced technology to drive efficiencies and lower trading costs.
“It’s not an easy decision to divest a business that has the depth of skills and reputation our FIS Execution Services team has earned,” said Nasser Khouri, the Head of FIS Capital Markets. “But after extensive analysis, we felt that our algorithmic trading business’s synergies with a global, highly scalable platform like Instinet’s were very compelling.”
The business was founded in 2000 and is based in Geneva, IL. FIS acquired the business through its 2015 acquisition of SunGard. FIS’s key products include trading algorithms and execution services, including direct market access and sales trading.
Pending regulatory approvals, the deal is expected to close later this year.