REDI Global Technologies announced that the firm today has completed the acquisition of Bank of America Merrill Lynch’s InstaQuote business, which includes the technology, clients, and employees.
The sale closure marks REDI’s upcoming one-year anniversary when it became an independent technology company. REDI was majority-owned by Goldman Sachs until the broker sold off its stake and was spun off last July.
REDI operates the REDIPlus execution management system. The technology allows traders to access algorithms and route orders to trading venues and brokers. REDI also operates a broker-dealer, REDI Global Technologies.
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Last July, Traders reported that Bank of America Merrill Lynch was set to transfer its InstaQuote execution management system to the then newly formed REDI Holdings, in which it has a stake.
That news follows the announcement that Goldman Sachs was spinning off its REDI trading technology unit to the newly formed REDI Holdings. Goldman and Merrill were part of a group of five broker-dealers and one private equity investor to take a stake in the new vendor. Barclays, Citadel Securities and BNP Paribas are the other brokers.
Last July Merrill’s InstaQuote clients were being migrated to REDI “in an orderly fashion,” according to Merrill. All of the broker’s algorithms and routes were immediately available and can be utilized by all REDIPlus users.
Now, clients of InstaQuote have been fully migrated to REDIPlus, increasing the firm’s client base by more than 20 percent and necessitating growth of platform capabilities. REDIPlus now offers a comprehensive suite of middle- office solutions, including deeper integration with a number of 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,” said Goutam Nadella, Chief Product Officer of REDI. “By adding middle office functionality to REDI’s robust trading platform, we’re answering our client demands for simplified and integrated workflows.”
The integration also brings 30 former InstaQuote employees to the REDI team, who are all based at a new REDI client service center in Dallas, Texas. These employees bring with them years of experience within the electronic trading space.
“Through the integration of InstaQuote, REDI is transforming electronic trading for the benefit of all market participants,” said REDI Board Member Bina Kalola, head global equities strategic direct investments, BofA Merrill Lynch. “We recognize the industry’s needs are changing, which further underscores the value of a broker-neutral platform like REDIPlus. As the industry evolves, we expect REDI to play a significant role in the consolidation of EMS platforms.”