Deutsche Börse acquires majority position in Quantitative Brokers, strengthening its strategic focus on the buy side

Deutsche Börse is acquiring a majority interest in Quantitative Brokers, an independent provider of advanced execution algorithms and data-driven analytics for global futures, options and interest rate markets. The fintech company, which has operations in New York, London, Sydney and Chennai, is a thought leader in market structure and stands at the forefront of innovation in the fast-growing market for intelligent, electronic execution services.

Quantitative Brokers’ portfolio of algorithms, simulation tools and analytics is used by some of the world’s largest institutional investors. QB’s offering services the increasing demand for intelligent and transparent solutions to manage execution cost and performance via a broker-neutral workflow. The QB algorithms are uniquely engineered for both central limit order books and OTC liquidity streams while accessible via all major execution and order management systems used by the buy side, banks and brokerage houses.

The transaction will move Deutsche Börse closer to the sources of trading interest in the buy side value chain, contributing to the Trading & Clearing division’s buy side focused growth initiatives. In the Exchange Traded Derivatives segment, it will accelerate buy side product adoption and order flow attraction. Quantitative Brokers’ renowned quant team will complement Deutsche Börse’s drive to expand its data and analytics services.

Thomas Book, Head of the Trading & Clearing Division of Deutsche Börse and Member of the Executive Board: “We are investing in a growth business with a renowned, innovative and leading quant team delivering a unique set of competencies in algorithmic execution. The exciting QB platform and team are a perfect fit with both our existing business and our long-term strategic perspective.”

Christian Hauff, CEO and co-founder of Quantitative Brokers: “The QB team is thrilled to join Deutsche Börse’s portfolio of strategic companies to further accelerate our institutional client uptake and global expansion across markets and asset classes. Our partnership with a 30 billion-dollar, global, multi-asset exchange group will provide even greater momentum to our growth plans.”

Robert Almgren, Chief Scientist and co-founder of Quantitative Brokers: “Deutsche Börse’s global relationships with buy and sell side customers will help us add value to an even broader range of clients. Our intelligent solutions will provide them with additional tools to better manage order execution in an increasingly complex market environment.”

The company will be majority owned by Deutsche Börse, with the founders retaining significant portions of their shareholdings and continuing in their respective roles; Christian Hauff will continue as CEO and Robert Almgren as Chief Scientist.

Quantitative Brokers’ 2020 revenues are expected to be around 25 million USD. Besides further double-digit revenue growth at Quantitative Brokers, the combined business is expected to deliver significant synergies. 

The parties expect to finalize the transaction by the end of this year, with the closing date remaining contingent on required regulatory approvals. Specific terms of the transaction were not disclosed.
 

About Deutsche Börse

As an international exchange organisation and innovative market infrastructure provider, Deutsche Börse Group ensures markets characterised by integrity, transparency and stability. With its wide range of products, services and technologies, the Group organises safe and efficient markets for sustainable economies. Its business areas extend along the entire value chain in exchange trading, including the admission, trading and clearing, and custody of securities and other financial instruments, the dissemination of market data, as well as the management of collateral and liquidity. As a technology company, the Group develops state-of-the-art IT solutions and offers IT systems all over the world.

With around 6,000 employees, the Group has its headquarters in the financial centre of Frankfurt/Rhine-Main, as well as a strong global presence in 41 locations such as Luxembourg, Prague, London, New York, Chicago, Hong Kong, Singapore, Beijing, Tokyo and Sydney.

About Quantitative Brokers

Quantitative Brokers (QB), an independent, global financial technology company, provides advanced algorithms and data-driven pre and post-trade analytics to clients in the Futures, Options and interest rate markets. The company is built on a research-driven culture, market microstructure know-how, and algorithmic engineering expertise. QB continually develops and innovates an evolving suite of products to reduce and measure implicit trading costs for its clients. Headquartered in midtown Manhattan, QB has branch offices in London, Sydney, and Chennai.

Quantitative Brokers’ portfolio of algorithms, simulation tools and analytics are used by many of the world’s largest institutional investors.  QB’s suite of algorithms — Bolt, Strobe, Legger, Closer, Octane, The Roll and Striker — are uniquely engineered for both central limit order books and OTC liquidity streams while accessible via all major execution and order management systems used by the buy-side, banks and brokerage houses.