Fintech acquisition round-up: 9 March 2017
Who’s buying who? Featuring Broadridge, Message Automation, Numerix and TFG Financial Systems.
Broadridge Financial Solutions has taken over Message Automation, a UK-based provider of post-trade control solutions.
The terms of the deal were not disclosed.
With this acquisition, Broadridge’s clients in the capital markets and investment management space will be able “to transform their risk and compliance capabilities, particularly for complex asset classes” as it is Message Automation’s expert subject.
Message Automation was founded in 2003. Its clients include tier one and two investment banks, regional banks and buy-side firms. Among them are KBC Bank, Nomura, BMO, Lloyds, HSBC, Sberbank, South African Reserve Bank, Credit Suisse, Fidelity, RBS and Société Générale.
Charlie Marchesani, president of the global technology and operations division of Broadridge, says this is the company’s “third acquisition related to broadening its post-trade and data analytics capabilities”.
Risk technology vendor Numerix has acquired TFG Financial Systems, “the only real-time risk, P&L and position management system in the industry”.
TFG’s flagship product – TFG Complete – has been rebranded as Numerix Oneview Asset Management.
“It provides Numerix with a turnkey SaaS-based real-time front-to-back office solution to immediately begin working with a range of new buy-side institutions,” Numerix says.
It adds that “the system can calculate VaR, Greeks and carry out stress testing on a sub-second basis, or price 25,000 interest rate swaps per second in volatile markets”.
TFG’s graph technology will be central to future versions of the Numerix Oneview enterprise platform, the vendor states.
With this acquisition, Numerix will be “the only independent provider of real-time trading and risk with a single source of data and analytics for front and middle office risk”.
Steve O’Hanlon, CEO of Numerix, says the company “conducted considerable due diligence on many firms who have staked the claim to delivering real-time capabilities in the market.
“It’s been well documented how many financial institutions have tried to develop real-time systems on their own and failed. Meanwhile, closed systems like SecDB have operated around proprietary languages and a legacy data model, and select vendor solutions are content to build out similar shell systems without the maturity of data model and analytics.”
Numerix Oneview, however, utilises a dynamic dependency graph and is “the next generation SecDB”, O’Hanlon states.
“Built utilising standardised components like Python and a modern market standard data model, Numerix is providing technology akin to what firms like Goldman Sachs and JP Morgan are providing while remaining independent and unbiased,” he claims.