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State Street to Acquire Pulse Trading

Financial services giant snatches up Pulse's block trading and blotter sweeping technology, thereby expanding the number of execution venues open to its institutional clients.

State Street Corporation is acquiring Pulse Trading, Inc., a Boston-based agency brokerage firm offering block crossing and blotter scraping technologies as part of its electronic trading capabilities. State Street, a provider of custody and asset management services, said it entered a definitive agreement to buy the firm in an announcement today.

The deal is expected to close in Q4 2011, pending regulatory and other closing conditions, according to State Street’s announcement today.

The transaction includes the acquisition of Pulse Trading’s institutional equities business and approximately 40 employees in Boston, New York, St. Louis and San Francisco.

“We look forward to joining State Street where we will continue bringing best-in-class trading technology to our institutional clients,” stated Christian Dubois, managing partner at Pulse Trading, in the release. According to Dubois, the acquisition will allow Pulse to extend its reach through the combination of its products with State Street’s scale and institutional client base.

“The acquisition of Pulse Trading is a natural extension of State Street Global Markets’ neutral agency model,” comments David Puth, EVP of State Street Global Markets.

“Pulse Trading’s sophisticated technology and block trading capabilities will expand the number of execution venues and the range of electronic trading tools available to our clients and ultimately help lower their trading costs.”

Pulse Trading has proprietary technology, known as BlockCross, that aggregates block orders from algorithmic order flow. It connects with algo pipes from the top brokers. Pulse looks for crosses by sweeping the uncommitted order flow residing in buy-side trading blotters against the incoming algo traffic.

Other agency brokers in this space include BIDS Trading, Instinet, Investment Technology Group, and Liquidnet among others.

Ivy is Editor-at-Large for Advanced Trading and Wall Street & Technology. Ivy is responsible for writing in-depth feature articles, daily blogs and news articles with a focus on automated trading in the capital markets. As an industry expert, Ivy has reported on a myriad ... View Full Bio

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