- Fintech acquisition delivers modern, cloud-based electronic
trading platform with visual data analytics and customizable
algorithmic strategies
- Emphasizes BMO's priorities to provide innovative technology
to clients and expand in areas of opportunity and strength
NEW YORK and TORONTO, Jan. 22,
2020 /CNW/ - BMO Financial Group (NYSE, TSX: BMO) today
announced that it has entered into a definitive agreement to
acquire Clearpool Group Inc., a New
York-based provider of holistic electronic trading solutions
and an independent agency broker-dealer operating in the U.S. and
Canada. The transaction is subject to receipt of required
regulatory approvals and other customary conditions and is
currently expected to close in the calendar second quarter.
Terms were not disclosed.
The transaction delivers powerful new capabilities to BMO's
electronic trading platform. As the nature of equity trading shifts
to increased emphasis on electronic trading, the acquisition of
Clearpool demonstrates BMO's commitment to delivering leading edge
trading technology to its global client base.
Founded in 2014, Clearpool has approximately 60 employees and
over 100 clients, primarily U.S. broker dealers who utilize the
company's trading technology and execution services. Its
Algorithmic Management System (AMS) provides a fully customizable
suite of algorithmic trading tools designed to service the best
execution needs of institutional clients. Clearpool is a 2019
Waters Rankings Winner – Best Algorithmic Trading Provider and a
recipient of the 2019 Markets Choice Awards – Best Algorithmic
Trading Company.
"BMO Capital Markets is accelerating on our strategic priorities
of delivering exceptional client-experiences, driving an innovation
mindset, activating a high performance culture and simplifying how
we do business," said Dan Barclay,
CEO, BMO Capital Markets. "The acquisition of Clearpool is
consistent with these priorities as it gives us access to leading
next-gen trading technology and a broker-dealer client base."
On closing, Clearpool will be a separate broker-dealer with
information barriers to secure clients' confidential
information.
"Clearpool's business was built on providing transparency and
control to all market participants," said Aine O'Flynn, Managing Director and Head of
Global Equity Products, BMO Capital Markets. "We are
committed to maintaining those principles."
"We are very excited to join BMO," said Joseph Wald, CEO and Co-Founder,
Clearpool. "The acquisition positions us well to accelerate
the next step in our platform development and provide the
infrastructure to become a global, multi-asset class electronic
trading solution. None of this would be possible without our
employees, clients, and advocates who continue to shape our vision
of transparency and collaborative trading solutions."
Electronic trading is a rapidly growing portion of the global
equity secondary commission/fee pool. A 2018 report by
Greenwich Associates estimates that 73% of global equity flows are
executed electronically and for more liquid developed markets, the
rate is likely over 90%.
In connection with the transaction, BMO Capital Markets acted as
financial advisor and Debevoise & Plimpton LLP and Osler,
Hoskin & Harcourt LLP acted as legal counsel to BMO.
Financial Technology Partners acted as financial advisor and
Morgan, Lewis, & Bockius LLP, Murphy & McGonigle and
Stikeman Elliott LLP acted as legal counsel to Clearpool.
About BMO Capital Markets
BMO Capital Markets is a
leading, full-service North American-based financial services
provider offering corporate, institutional and government clients
access to a complete range of products and services including
equity and debt underwriting, corporate lending and project
financing, mergers and acquisitions advisory services,
securitization, treasury management, market risk management, debt
and equity research and institutional sales and trading. With
approximately 2,700 professionals in 33 locations around the world,
including 19 offices in North America, BMO Capital Markets
works proactively with clients to provide innovative and integrated
financial solutions.
BMO Capital Markets is a member of BMO Financial Group (NYSE,
TSX: BMO) one of the largest diversified financial services
providers in North America with $852
billion total assets as at October 31, 2019.
About Clearpool
Launched in 2014 and based in
New York, Clearpool Group, Inc.
offers holistic electronic trading solutions and provides
independent agency broker-dealer execution services. With over 100
Algorithmic Management System (AMS) broker-dealer clients and
executing approximately 2% of the US equity market volume,
Clearpool empowers market participants to achieve better quality
executions in an evolving equity market microstructure and
competitive landscape.
Certain statements in this press release are forward-looking
statements under the United States Private Securities Litigation
Reform Act of 1995 (and are made pursuant to the 'safe harbour'
provisions of such Act) and applicable Canadian securities
legislation. These forward-looking statements include, but are not
limited to, statements with respect to the expected closing of the
proposed transaction, plans for the acquired business and the
financial impact of the proposed transaction and are typically
identified by words such as "believe", "expect", "anticipate",
"intend", "estimate", "plan", "will", "should", "may", "could" and
other similar expressions.
By their nature, forward-looking statements are based on
various assumptions and are subject to inherent risks and
uncertainties. We caution readers of this press release not to
place undue reliance on our forward-looking statements as the
assumptions underlying such statements may not turn out to be
correct and a number of factors could cause actual future results,
conditions, actions or events to differ materially from the
targets, expectations, estimates or intentions expressed in the
forward-looking statements. Such factors include, but are not
limited to: the possibility that the proposed transaction does not
close when expected or at all because required regulatory approvals
and other conditions to closing are not received or satisfied on a
timely basis or at all; the terms of the proposed transaction may
need to be modified to satisfy such conditions; the anticipated
benefits from the proposed transaction are not realized in the time
frame anticipated or at all as a result of changes in general
economic and market conditions, interest and exchange rates,
monetary policy, laws and regulations (including changes to capital
requirements) and their enforcement, and the degree of competition
in the geographic and business areas in which Clearpool's business
currently operates; the ability to promptly and effectively
integrate Clearpool's business; reputational risks and the reaction
of Clearpool's customers and employees to the transaction;
diversion of management time on transaction-related issues; and
those other factors set out on page 68 of BMO's 2019 Annual Report
to Shareholders. We caution that the foregoing list is not
exhaustive of all possible factors. These factors should be
considered in addition to other uncertainties and potential events,
and the inherent uncertainty of forward-looking statements.
BMO does not undertake to update any forward-looking
statement, whether written or oral, that may be made, from time to
time, by the organization or on its behalf, except as required by
law.
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SOURCE BMO Financial Group