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(Photo: Osler, Hoskin & Harcourt LLP)

Canada’s BMO Financial Group to acquire electronic trading company in US

(Photo: Osler, Hoskin & Harcourt LLP)

Canadian ‘big five’ BMO Financial Group last Wednesday, January 22, announced that it has entered an agreement to acquire Clearpool Group Inc.

Based in New York, Clearpool is an independent agency broker-dealer that operates both in the US and Canada. The company also provides electronic trading solutions.

Founded in 2014, the company currently employs approximately 60 people and has over 100 clients, mainly US broker-dealers who use the company’s trading technology and execution services.

“Clearpool’s business was built on providing transparency and control to all market participants,” Aine O’Flynn, managing director and head of Global Equity Products, BMO Capital Markets, commented. 

Managing Director and Head of Global Equity Products — BMO Capital Markets Aine O’Flynn (Photo: BMO Capital Markets)

BMO to leverage Clearpool’s technology

BMO looks forward to enhancing the capabilities of its electronic trading platform. In fact, the Canadian financial institution anticipates leveraging Clearpool’s Algorithmic Management System (AMS), which provides a fully customisable suite of algorithmic trading tools designed to better service the needs of its clients.

“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,” a press release from BMO stated.

“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.”

— Dan Barclay, CEO, BMO Capital Markets

According to a 2018 research conducted by Greenwich Associates, about 73 per cent of global equity flows are executed electronically with an over 90 per cent rate for more liquid, developed markets.

“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,” Dan Barclay, CEO, BMO Capital Markets, explained.

Dan Barclay, CEO, BMO Capital Markets (Photo: BNN Bloomberg)

“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,” he added.

Terms and conditions

Subject to regulatory approvals and conditions, BMO’s acquisition of Clearpool should take effect in the second quarter of the year. However, neither company has disclosed the terms of the agreement.

What is clear is that, upon closing the deal, Clearpool will operate separately as a broker-dealer with information and confidentiality restrictions in place to secure clients’ details. The US-based fintech is equally hopeful about the benefits of the acquisition.

Joseph Wald, co-founder and CEO of Clearpool Group (Photo: Clearpool Group)

“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,” co-founder and CEO of Clearpool Joseph Wald shared.