With this acquisition, which is effective immediately and includes Cicadaâs entire global employee base, Cicada founder and CEO Gregory E. Smith will become the head of Chi-X Globalâs newly-created exchange services business unit, Chi-X Global Technology, LLC. The new exchange services business will operate separately from Chi-Xâs regional trading platforms.
âMarket centers around the world are today looking to build out their trading infrastructures in order to accommodate the global trading communityâs vastly increased demands, and Cicada has clear expertise in this area after having worked with a number of global exchanges on their technology needs. Not only is this development knowledge an extremely complementary fit with the global Chi-X business model, but it also allows us to now offer exchanges and MTFs a proven, scalable and low-cost technology infrastructure,â said Tony Mackay, CEO of Chi-X Global.
Continued Mr. Mackay, âAs weâve seen thus far, the market efficiencies created by Chi-X and others have not only dramatically lowered costs for our participants and their end customers, they have also helped to greatly increase the liquidity and trading volumes found on the primary exchanges. We believe that by leveraging the expertise of our newly-created services business, trading venues around the world will be able to create similarly efficient marketplaces, which at the end of the day benefits everyone â exchanges, brokers and investors â involved in the trading process.â
âChi-Xâs technology has proven to be robust and scalable and has been instrumental in the early success that the platforms have seen in Europe and, increasingly, Canada. With this acquisition, Chi-X will be able to continue to innovate with technology advances while expanding its business into new areas by serving the technology needs of exchanges, MTFs and users of these trading venues globally. The unique experience and capabilities of the combined organization is a very powerful competitive edge in a rapidly changing market,â added Mr. Smith.
Cicadaâs data management platforms have been deployed by some of the worldâs leading exchanges to manage, package and disseminate real-time market data to distributors and customers. Cicadaâs ProfilerÂ® product assists financial firms in managing their customer qualification process and conduct periodic reviews, data collection, document gathering and other due diligence activities required for anti-money laundering (AML) and âknow your customerâ (KYC) compliance. Cicadaâs MarketPrizmâ¢ platform is an ASP-based algorithmic trading infrastructure that assists brokerage firms in trading effectively and cost-efficiently in the European markets.
Financial Technology Partners LP and FTP Securities LLC (together âFT Partnersâ) acted as exclusive strategic and financial advisor to Cicada in this transaction.