Risk Management

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Four Wall Street Giants Invest in FTEN’s Risk Technology to Expand Turnkey Solution to Hedge Funds in Europe and Asia

Merrill Lynch, Goldman Sachs, J.P. Morgan and Credit Suisse take stakes to support multi-prime trend and multi-asset offering to hedge funds.

As for why J.P. Morgan is making an investment in FTEN, according to Reyes Miras, "J.P. Morgan is constantly looking at investment opportunities in the industry — in addition to the obvious expected return on these type of investments, this type of activity brings us closer to our key partners and gives the firm the opportunity to take an active role in the shaping of the future of the industry."

The FTEN investment is expected to help J.P. Morgan provide a turnkey solution to low-latency statistical arbitrage hedge funds. J.P. Morgan uses a variety of distribution channels through its Electronic Client Solutions (ECS) group to provide electronic execution services to its clients."This includes deploying our own execution management system (Neovest) globally to the hedge fund community which up until now was only deployed in the United States, and building a global electronic execution and financing product," continued Reyes Miras. "The market-leading technology solution FTEN is providing, couple with J.P. Morgan's prime brokerage product, will provide our clients with a turnkey execution and financing solution to access global markets," said Reyes Miras.

Each investment bank is taking a minority stake in the service provider, which will maintain its independence and neutrality so it can work with each partner, said the release.The Series B Preferred Stock funding will help FTEN continue to establish international relationships as it extends its global footprint for multi asset class and multi-prime broker offerings. The firms' existing strength is in U.S. and European equities, options and futures markets. Currently FTEN's technology processes 20 percent of the U.S. daily equities volume and risk management calculations, said the release.

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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