November 30, 2011

GETCO LLC, a leading U.S. high-frequency trading firm and global market maker, announced the purchase of Bank of America Merrill Lynch's designated market making unit, which facilitates trades on the New York Stock Exchange.

GETCO said the move will significantly expand its market making operation and responsibilities on the NYSE, making it the designated market maker (DMM) for nearly 650 companies and 850 securities on the exchange. The financial terms of the deal were not disclosed.

GETCO has been a NYSE DMM since 2010, a role it held for more than 30 high-volume issues, including General Motor's record $20 billion initial public offering last November. DMMs drive price discovery and provide liquidity to the marketplace, paving the way to tighter spreads, deeper markets, and greater price stabilization for securities they service.

"This transaction underscores GETCO's growing presence to our market and its commitment to issuers, investors, and our entire community," NYSE Euronext Chief Operating Officer Lawrence Leibowitz said in a statement.

Meanwhile GETCO's global head of equities Daniel Coleman added that NYSE's advanced technological infrastructure played a role in his firm's decision to expand its market making operations on the exchange.

"NYSE has brought the floor model into the digital age by synthesizing best-in-class technology with the unique perspective of the individual market maker."

As the Senior Editor of Advanced Trading, Justin Grant plays a key role in steering the magazine's coverage of the latest issues affecting the buy-side trading community. Since joining Advanced ...