Financial services firm Cowen Group has agreed to acquire multi-asset class algorithmic execution trading models provider Algorithmic Trading Management (ATM).
ATM offers customised trading algorithms that enable both buy and sell side traders to achieve the best market value.
Cowen co-head of Quantitative Trading Solutions Douglas Rivelli will be named as CEO of ATM and will be responsible for overseeing the ATM business.
ATM noted that it will continue to operate as a separate financial technology business delivering broker neutral services to existing and future clients.
Cowen chairman and CEO Peter Cohen said that the ATM team has developed first-rate execution technology that will greatly enhance the algorithmic trading capability in our broker-dealer business.
Cowen expects that the addition of ATM’s platform to its existing trading business will help it meet the increasing demands for enhanced electronic execution products among its institutional clients.
The deal will also provide ATM clients with access to Cowen’s equity research product and distribution network.
The transaction is expected to close by early second quarter of 2012 following certain regulatory approvals and customary closing conditions.
Financial terms of the transaction were not disclosed.