BMO Financial Group has concluded the purchase of Clearpool Group, an electronic trading solutions firm and agency broker-dealer.
The deal, whose financial terms were not disclosed, was announced earlier this year.
It offers BMO a “cloud-based electronic trading platform with visual data analytics and customisable algorithmic strategies”.
BMO believes that the takeover will not affect its financial results significantly.
It also expects the deal to lower its CET1 ratio by nearly 10 basis points.
Clearpool will continue to be a separate broker-dealer.
Moreover, the firm will have barriers to maintain the confidentiality of client data.
Commenting on the acquisition, BMO noted: “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.”
Based in New York, Clearpool offers algorithmic trading tools through its Algorithmic Management System (AMS).
The firm, set up in 2014, has more than 100 AMS broker-dealer clients.
In 2018, BMO agreed to acquire KGS-Alpha Capital Markets, a New York-based fixed income broker-dealer specialising in US mortgage (MBS) and asset-backed securities (ABS).
KGS-Alpha was rebranded as BMO Capital Markets upon deal completion.