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REDI Acquires InstaQuote EMS From Merrill Lynch

The acquisition expands REDI's EMS client base by more than 20%.

This morning, executives from REDI Global Technologies announced the completed acquisition of BofA Merril Lynch's InstaQuote execution management system (EMS) business, including its technology, clients, and 30 employees from the client service office in Dallas.

The acquisition expands REDI's EMS client base by roughly 20%, including small and midsized redistribution brokers.

This is REDI's first acquisition as an independent firm after its separation from Goldman Sachs nearly a year ago. According to a press release, the firm is looking to expand "both in size and capability in order to deliver valuable new services to clients globally."

Entering new markets prompted additions to the platform, which including a suite of middle-office solutions, deeper integration with several clearing and prime brokers, and expanded risk management capabilities.

"Our product strategy is centered on how we can make trading better and serve clients across the trade lifecycle -- the integration of the InstaQuote technology reflects this commitment," Goutam Nadella, chief product officer of REDI, said in the press release. "By adding middle office functionality to REDI's robust trading platform, we're answering our client demands for simplified and integrated workflows."

InstaQuote clients have been fully migrated to the new platform. The behind-the-scenes technology integration took six months. Beta testing took three months.

Becca Lipman is Senior Editor for Wall Street & Technology. She writes in-depth news articles with a focus on big data and compliance in the capital markets. She regularly meets with information technology leaders and innovators and writes about cloud computing, datacenters, ... View Full Bio

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IvySchmerken
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IvySchmerken,
User Rank: Author
6/11/2014 | 5:00:40 PM
Brokers Sell Off Trading Platforms
The news that REDI is acquiring InstaQuote from BoFA Merrill Lynch continues the trend of major sell-side firms divesting their front-office EMS platforms. In the past, we saw Barclays sell Real Tick EMS to ConvergEx, which then spun off a separate software unit, and Citi sell off its Lava OMS to FlexTrade Systems. Then we saw Goldman Sachs spin off REDI into an independent company. Now it seems that REDI is acquiring a broker-owned EMS to increase its share of institutional trading clients.  It appears that all InstaQuote clients have been migrated to the REDI EMS which has boosted REDI's client base by 20%. BoFA Merrill owns an equity interest in REDI Global Technologies, so they are benefiting from the integration. I believe that all Merrill's algos will be accessed via the REDIPlus EMS, something that was not possible when REDI was owned by a broker.


 

 
Becca L
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Becca L,
User Rank: Author
6/29/2014 | 4:02:26 PM
Re: Brokers Sell Off Trading Platforms
Thanks for all that background, Ivy. Really brings it into perspective as an industry-wide trend away from front-office EMS systems.
IvySchmerken
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IvySchmerken,
User Rank: Author
6/29/2014 | 10:43:22 PM
Re: Brokers Sell Off Trading Platforms
We're seeing brokers exit the front-end trading software business, while they are leveraging REDI as a neutral platform to distribute their algorithms or take advantage of portfolio analytics and middle office features. It's a 360 degree turn from where the EMS trend started in the early 2000s.
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