BMO Financial Group has completed the acquisition of fintech firm Clearpool to enhance its electronic trading platform with innovative technology.
The acquisition is a response to a trend shifting away from equity trading to increased electronic trading, the Canadian bank said.
It cited a 2018 report by Greenwich Associates, which estimates that 73% of global equity flows are executed electronically and, in case of more liquid developed markets, the rate is likely over 90%.
Clearpool is a New York-based provider of holistic electronic trading solutions and an agency broker-dealer operating in the US and Canada.
Its cloud-based platform offers visual data analytics and customisable algorithmic trading strategies.
BMO announced the acquisition on 22 January, but did not disclose the terms.
Clearpool will continue to be a separate broker-dealer with information barriers to secure clients’ confidential information, BMO said.
Aine O’Flynn, managing director and head of global equity products and research at BMO Capital Markets, commented: “Clearpool’s business was built on providing transparency and control to all market participants.
“We are committed to maintaining those principles.”
BMO Financial Group is a diversified financial services provider based in North America with $665bn (€611bn) of total assets as of 31 January 2020.