Piper Jaffrey to purchase Vie Securities, a provider of electronic execution services.
Piper Jaffray agreed to acquire Vie Securities, LLC, the broker-dealer subsidiary of parent Vie Financial Group, for $15 million, in a deal announced Wednesday. Vie Securities supplies algorithm-based, electronic execution services. The deal positions Piper to offer institutional clients a full suite of trading products, meeting the demand for cost-effective execution services, the brokerage firm says.
TowerGroup estimates in a report published this week that algorithmic trading volume is expected to double, from 13 percent of U.S. equity flow in 2003 to 27 percent by the close of 2006. Buy-side initiated algorithmic trading will triple from an estimated seven percent in 2004 to 21 percent in 2006, says the financial technology research firm.
The Vie acquisition includes proprietary algorithms, direct-market access systems, licensed trading technology and approximately 25 employees in New York, who will move to Piper Jaffray's New York office next year.
VIE Securities CEO Dean Stamos will continue to head the business, reporting to Mark Donahoe, head of equity trading at Piper Jaffray. Vie clients will continue to receive service under the Vie name until the transaction closes, which is expected in the fourth quarter.