1. Bank of America ‘rescues’ Merrill Lynch (2009)
“Mega-merger” is a term usually reserved for only the most impactful of market movements. However, no-one can deny that the first deal on the list – investment bank Bank of America’s acquisition of Merrill Lynch – fits the bill.
The deal was announced on 15 September 2008 and resulted in a deal worth $50 billion. It eventually closed in January 2009, following intense market attention from all corners.
The agreement came as Merrill Lynch faced bankruptcy, closing just days before the guillotine was predicted to drop on the global broker-dealer.
As part of the multitude of developments following close was an expansion of the offering available to clients regarding their broking operation – the new offering formed from the merger allowed US clients to choose which firm’s direct market access (DMA) platform to use.
Customers could choose between Merrill Lynch’s X Trade or Bank of America’s Instaquote platform to access the combined entity’s electronic execution tools.
In addition, Bank of America named the new executives that would run the combined execution team created by the merger.
Roger Anerella, head of global execution services, was appointed to lead the team, while Ashok Krishnan retained responsibility for EMEA execution services and Michael Lynch was named to lead execution services for Americas.
Jon Werts managed the combined firm’s broker-dealer execution services, futures and Instaquote, while in Asia, Mark Wheatley was elected to head up Pacific-Rim execution services. In addition, Chris Hayward was named chief operating officer for global equities.
2. NYSE gets landmark ICE deal over the line as Euronext is spun out (2013)
Across all industries, we know that the bigger the deal, the bigger the roadblocks, especially when it comes to omnipresent watchdogs. In the world of stock exchanges this has historically been a particular trend.
A short time after NYSE Euronext was prevented from merging with Deutsche Borse by the European Commission in a blockbuster announcement due to competition concerns arising from the combination of the two exchanges listed derivatives businesses, Liffe and Eurex, the exchange darted to dip its toes back into the world of M&A.
The idea that Intercontinental Exchange (ICE) – started in just 1997 – would step up and acquire a trading venue dating back to the 18th century was quite something. Meanwhile, the $8.2 billion price tag was also rather eye-catching. ICE clearly wanted NYSE’s London-based European derivatives market Liffe, above all, but the marriage also solved NYSE’s clearing dilemma after it had terminated the deal it had with LCH.Clearnet for derivatives clearing services.
Fortunately, the deal did not raise the same competition concerns as the previously attempted merger, and it completed in November 2013, creating a juggernaut of a stock exchange across equities and derivatives.
Throughout the process, the plan was always for Euronext to be sold or spun out, and the bourse – which is now a staple of Europe’s capital markets – launched its IPO in 2014 and would go on to embark on a growth journey making its own acquisitions in the years to come which included the Irish Stock Exchange, Oslo Børs, and Borsa Italiana.
3. UBS – Credit Suisse deal gets (pushed) over the line (2023)Next up, still fresh in everyone’s minds, is the UBS/Credit Suisse deal – contentious and complex as many deals are, but overall doubtlessly significant for the market and unique.
Switzerland’s largest bank UBS Group’s forced takeover of its local rival Credit Suisse Group closed in June 2023 after a convoluted takeover process which included intervention from state regulatory bodies across continents.
The final deal saw Credit Suisse shareholders receive one UBS share for every 22.48 outstanding shares held, with UBS assuming responsibility for Credit Suisse’s obligations under its outstanding debt securities. UBS also assumed all of the company’s assets and liabilities as it is merged into its business.
UBS first confirmed its intention to take over Credit Suisse in March 2023 and was eventually pushed over the line without shareholders’ approval. An emergency ordinance was issued by the Swiss Federal Council with the Swiss National Bank at the time asserting the takeover would “secure financial stability and protect the Swiss economy in this exceptional situation”.
The decision by the Swiss regulators to pay Credit Suisse equity-holders CHF3 billion, whilst writing down the value of AT1 debtholders to zero, raised some possible litigation concerns following announcement of the deal.
Since close of the acquisition, the blows keep coming as UBS cut a number of positions in its cash equities business in London alongside a swathe of moves between the two businesses from senior executives.
The new leadership structure included the departure of UBS Group chief financial officer, Sarah Youngwood with Todd Tuckner, UBS global wealth management chief financial officer and head of business performance and risk management primed to replace her.
The plan is for a consolidated banking group with five business divisions under UBS AG, and integrate the two entities in a phased approach going forward.
4. CBOE becomes Cboe Global Markets as it absorbs Bats (2017)What makes a deal ‘big’? Capital of course, but more than that is impact – and lasting impact specifically. A leading example of which was the CBOE takeover of Bats in 2017, which led to the creation of a key industry player today.
CBOE completed its $3.4 billion acquisition of Bats Global Markets in a cash and stock transaction.
The proposed acquisition was announced in September the year prior and was aimed at providing CBOE – which had previously avoided takeovers and acquisitions – a gateway into the European equity and exchange-traded fund (ETF) markets.
Following the completion of the deal, a rebrand was announced. CBOE became Cboe Global Markets – pronounced “see-bo” – to reflect the company’s expansion beyond its options heritage to a multi-asset trading venue.
Bats Europe became Cboe Europe Equities, with its block trading platform, formerly known as Bats LIS, renamed Cboe LIS, and its FX business Hotspot rebranded to become Cboe FX.
Edward Tilly, chair and chief executive of CBOE, said at the time that both exchange groups had been working hard over the past few months to create a ‘seamless integration plan’.
Several changes to the leadership team of the now combined exchange operator were announced, although it was confirmed Bats Europe would remain as a standalone business for the time being with current chief executive, Mark Hemsley continuing to run the unit.
In 2019, Cboe Global Markets completed its multi-year project to migrate its exchanges onto its proprietary Bats technology. The project unified all Cboe options, equities, and futures markets onto a single technology platform.
5. The London Stock Exchange’s blockbuster takeover of Refinitiv (2021)Coming in at number five is the London Stock Exchange’s (LSEG) acquisition of data and analytics giant, Refinitiv. The $27 billion blockbuster deal back in January 2021 followed almost 18 months of deliberations.
The transaction at the time was set to transform both the exchange and the wider market, driven by a desire to keep up with the increasing importance of data and analytics across the industry and the shift towards e-trading and multi-asset approaches.
The acquisition effectively expanded the number of avenues LSEG could capitalise on, providing access to several data and analytics businesses, two large FX and fixed income trading platforms, FXall and Tradeweb, a significant US focused wealth management businesses and an ever-growing footprint in Asia.
An undeniable benefit to LSEG was Refinitiv’s vast cross-asset data offerings which would allow the exchange to capitalise on the market’s growing reliance on data.
Initially LSEG’s acquisition of Refinitiv was planned to complete in H2 2020, however following competition concerns around bond trading and market data, the European Commission launched an investigation into the takeover.
As a remedial measure, the EU regulator approved the deal on the condition that the exchange offload its Borsa Italiana business and MTS bond trading platform…
6. Lehman Brothers and Barclays – “a once in a lifetime opportunity” (2008)Huge numbers are a given when it comes to impactful mergers and acquisitions, and it usually the number one indicator of a big move, but not always…
Back in 2008, the sell-side witnessed a steal of a deal as Barclays Capital acquired a bankrupt Lehman Brothers for just $250 million.
The UK investment bank acquired all of the North American businesses and operating assets and certain related assets of US investment bank Lehman Brothers just two days after it filed for bankruptcy.
Barclays’ former managing director said at the time that it was “a once in a lifetime opportunity for Barclays”.
As part of the agreement, Barclays acquired Lehman Brothers’ investment banking, fixed income and equities sales, trading and research operations and supporting functions, with around 10,000 Lehman employees transferring to Barclays.
Barclays also bought the headquarters of Lehman Brothers and its two data centres for around $1.45 billion.
At the time, the UK bank also confirmed its intention to provide information technology, operational and other support services to ensure Lehman Brothers’ continued operations.
Speaking at the time, John Varley, Barclays Group chief executive, said: “The proposed acquisition of Lehman Brothers’ North American investment banking and capital market operations accelerates the execution of our strategy of diversification by geography and business in pursuit of profitable growth on behalf of our shareholders, in particular increasing the percentage of Barclays earnings sourced in North America.”
The transactions have been approved by both banks’ boards, but no shareholder approvals are required. However, the transaction is subject to bankruptcy court approval.
7. LSEG wins LCH bidding war (2013)The M&A sphere is one full of intrigue in large part because it does, at times, get messy – bidders at loggerheads is a favourite industry spectator sport after all, read on for one of The TRADE’s favourites.
In 2013, clearing house LCH.Clearnet saw itself as the centre of a bidding war, with LSEG eventually coming out on top.
LSEG acquired a majority 55% stake for 15 euros per share as exchange groups battled to diversify their businesses in the face of competition from alternative trading venues.
The deal valued the clearing house at €633 million at the time. Following the transaction there were 14 minority shareholders remaining, with the banks selling down their stakes but retaining shares including: Bank of America Merrill Lynch, Barclays, JPMorgan, Morgan Stanley and Société Générale.
Prior to the acquisition, LCH.Clearnet confirmed that it had received proposals indicating an interest in possible “business combinations” or other forms of cooperation from various entities.
Speculation at the time pegged market operator groups Nasdaq OMX, the London Stock Exchange (LSE) and NYSE Euronext as the interested parties.
The key driver to what made LCH.Clearnet, which operates SwapClear, a clearing service for OTC interest rate swaps, a potentially desirable acquisition target were regulatory developments around that time.
European regulators were in the process establishing a framework of rules, the European markets infrastructure regulation, to meet the obligations of the Group of 20 countries to centrally clear standardised OTC derivatives by the end of 2012.
UK and Swiss regulators had also begun the approval process for interoperability arrangements between LCH.Clearnet and fellow central counterparties EuroCCP and SIX x-clear which will allow them to compete for clearing business in cash equities.
8. Dark pool operator Liquidnet picked up by TP ICAP (2021)
Coming in at number eight is a key technological partnership within the industry, where two complementary firms combined to accelerate their development – a simple and, importantly, effective strategy.
Interdealer broker TP ICAP completed its acquisition of institutional trading network and dark pool operator Liquidnet in 2021, with the deal set to boost its electronic trading capabilities.
The $700 million acquisition saw TP ICAP combine its high-touch derivatives and cash equities with low-touch block cash equities platform at Liquidnet.
TP ICAP confirmed its intentions to buy the company in September, entering into a definitive agreement to buy Liquidnet swiftly afterwards in October.
Under the terms of the agreement, TP ICAP said it would pay a cash consideration of $525 million, $50 million three years after completion, and up to a further $125 million depending on Liquidnet’s performance over that period.
At the time, Nicolas Breteau, chief executive at TP ICAP, said: “Completing the acquisition of Liquidnet is an important milestone for TP ICAP. Bringing together two highly complementary businesses transforms our growth prospects by materially accelerating the execution of our strategy.”
With Liquidnet, the brokerage will also expand its offering in dealer-to-client rates and credit trading. Liquidnet currently offers execution protocols mostly targeting large client-to-client trading of corporate bonds and TP ICAP plans to extend this further to include a range of dealer-to-client tools.
“Our focus now is on the swift integration of Liquidnet and realising the compelling opportunities to drive higher revenues and returns to shareholders,” Breteau added.
9. LSEG picks up Turquoise as market looks on (2010)The next deal is one which had buy-side market onlookers very vocal about the implications of the move.
The London Stock Exchange Group (LSEG) completed its acquisition of investment bank-owned pan-European multilateral trading facility (MTF), Turquoise back in 2010.
The move came as buy-side market onlookers had previously shared their positive attitude towards the slight reduction in fragmentation the acquisition would bring – albeit cautious about consolidation not going too far.
The new entity was confirmed to be 60% owned by the LSEG despite continuing to trade under the Turquoise name. The nine existing bank shareholders of Turquoise retained a 40% stake in the joint venture.
As part of the deal, the LSE confirmed plans to create a new venture through the merger via its Baikal initiative.
Baikal’s matching engine was initially due to go live before the end of the same year but was postponed following the announcement of the Turquoise interest. LSEG’s subsequent intention was to offer Baikal’s “innovative product pipeline” via Turquoise’s existing capabilities, including its dark trading service.
“We are very pleased to be joining forces with a number of our major clients in a partnership which we believe will offer an attractive range of innovative and competitively priced products and services across Europe,” said Xavier Rolet, LSEG’s chief executive and chair-designate of the new venture, at the time.
10. BNP Paribas makes strides across Europe topped off by Exane acquisition (2021)Rounding off our top 10, comes a deal from BNP Paribas. As businesses increasingly seek to “plug gaps” in their offerings through M&A deals, The TRADE puts the spotlight of one of the most successful examples.
French investment bank, BNP Paribas, completed the acquisition of the remaining 50% stake in equity brokerage Exane back in 2021 after a 17-year partnership, bringing the bank’s cash equities trading and research and derivatives activities back in-house.
The deal was a key strategic move to book BNP Paribas’ position within the European equities space following a major deal with Deutsche Bank in 2019 to take on the German institution’s electronic equities and prime brokerage clients, adding roughly $200 billion of assets to BNP Paribas.
“Exane plays a key role in BNP Paribas global markets’ fully-fledged equity ambition as we bring in cash equities while continuing to strengthen our flow and derivatives offerings, and expanding the prime services business through the new integrated platform from Deutsche Bank,” said Olivier Osty, head of global markets at BNP Paribas at the time.
Following the 2019 deal, BNP Paribas outlined plans to roll out an expanded prime services division following the integration of Deutsche Bank’s clients.
The expanded unit saw BNP Paribas’ prime services become more closely linked with Exane as the firm aimed to develop the equity business within the corporate and investment bank division.
Speaking at the time, Yann Gérardin, head of corporate and institutional banking and chief operating officer at BNP Paribas, asserted that “the acquisition of Exane, together with the transfer of Deutsche Bank’s global prime finance and electronic equities business to BNP Paribas, positions BNP Paribas as a European leader in global equities. It also supports CIB’s ambition in equity capital markets and M&A.”
11. Euronext moves to acquire Borse Italiana and MTS (2021)After the European Commission’s ruling to alleviate competition concerns stemming from the LSEG/Refinitiv deal, Euronext arrived to save the day.
Pan-European exchange Euronext acquired Borsa Italiana, including MTS, from LSEG in a €4.4 billion deal on 29 April later that year.
Euronext initially agreed to the acquisition in October 2020 and underwent a leadership reshuffle the following January to prepare – appointing a new chief executive in Paris, Delphine d’Amarzit as the former CEO, Anthony Attia, assumed a new senior role responsible for overseeing the integration of Borsa Italiana.
“The completion of the transaction successfully creates the leading pan-European market infrastructure and the leading venue for capital markets in Europe. Euronext believes that customers, of both Euronext and Borsa Italiana Group, will benefit from the greater size of the new Group, its diversified business mix and strengthened post-trade activities, including a multi-asset clearing house,” said Euronext in a statement on 29 April.
More recently, in December 2022, Euronext sold off one of the MTS subsidiaries following a strategic review. A subsidiary of interdealer broker Compagnie Financière Tradition SA, Tradition America Holdings acquired it for an undisclosed price.
Euronext’s decision came as the exchange sought to “divest from non-core assets”, with the remaining MTS businesses remaining, considered central to its continued strategy.
12. NYSE integrates Archipelago to keep up with market demands (2006)Acquisitions are the common denominator across markets as players seek to enhance market share, reaching every facet of our ecosystem in every region. However, the noughties saw consolidation as a strategy for innovation come out as a key priority – particularly for trading platforms, as this next deal demonstrates.
Back in 2006, the New York Stock Exchange (NYSE) acquired Chicago-based electronic stock and derivatives market Archipelago to form the NYSE Arca Exchange – with the entity becoming a publicly-traded company following the transaction.
Before the takeover of Archipelago, first announced in 2005, most NYSE’s transactions were entered manually, in a slower process, however the NYSE opted for a hybrid model following its acquisition of Archipelago.
With the deal, the NYSE offered both electronic trading and traditional floor trading to day traders and institutional investors.
The acquisition revamped its trading floor with the introduction of designated market makers (DMMs) – firms that are required to maintain a fair and orderly market for NYSE-listed securities via physical and electronic auctions. It also adopted the use of handheld devices that let brokers deploy algorithmic trading strategies which interact with the electronic order book and are developed by NYSE or third-party providers like Deep Value.
“NYSE did not have a platform that could compete with Archipelago, so they bought it. When Nasdaq bought INET, they bought a better platform and market share,” said Larry Tabb, founder and chief executive of TABB Group following the deal.
The following year, Duncan L. Niederauer, a managing director at Goldman Sachs, left the firm after 22 years to become president and co-chief operating officer of NYSE Group – which included overseeing the activities of the recently-formed NYSE Arca.
13. SIX Group comes out on top for acquisition of Bolsas y Mercados Españoles (2020)Exchanges have, and continue, to enhance their offerings at the risk of falling – and being left – behind in the fast-evolving market. This next acquisition followed a well-publicised bidding war with SIX and pan-European bourse Euronext.
Shareholders in Spanish stock exchange Bolsas y Mercados Españoles (BME) accepted a €2.8 billion takeover bid from Swiss exchange operator, SIX Group back in 2020.
Euronext was also in talks to acquire the Spanish exchange, however as SIX received various regulatory approvals for the takeover from authorities in Spain, the bid was dropped.
SIX confirmed in a statement it had acquired 93.16% of equity share capital in BME for €2.6 billion at €32.98 per share. The accepted offer has been adjusted from the initial bid of €34 per share due to additional dividend payments linked to the deal.
The combined group was set to better address the growing needs of the Spanish market and expand its global footprint.
“SIX is committed to preserving and strengthening BME’s position in Spain. The combined group will create innovation hubs in Spain and attract new pools of capital to the Spanish market,” Jos Dijsselhof, chief executive of SIX said at the time.
In its 2019 report, published in March, SIX confirmed that it would continue to look for opportunities to acquire other market infrastructure providers, asserting that it had sufficient funding to do so.
14. Deutsche Bank’s all-cash takeover of Numis (2023)In the same month Redburn agreed to acquire Atlantic, Deutsche Bank confirmed its intention to acquire Numis for £410 million, as revealed in documents seen by The TRADE.
The all-cash transaction followed the shuttering of Numis’ low touch electronic trading business the week prior.
Deutsche Bank had long been mulling the best way to accelerate the growth of its UK business prior to the acquisition, identifying it as the largest investment banking market in Europe, documents seen by The TRADE outlined.
Through the deal Deutsche Bank was thrown back into the fore of European equities having previously moved to exit the market by signing over its electronic equities business to BNP Paribas alongside its prime brokerage business in 2019.
The combination of the pair’s businesses across corporate broking, strategic advisory, equity and debt capital markets, and equity sales, research and execution is expected to allow them to “unlock significant value” within their franchises.
Speaking at the time, Fabrizio Campelli, head of corporate bank and investment bank at Deutsche Bank, asserted: “This Transaction is strongly aligned to our Global Hausbank strategy and has the potential to unlock significant value within both the Numis and Deutsche Bank franchises.”
Coming in at number 15 is a buy-side win for Goldman Sachs Asset Management, which further cemented the firm as a key player in the European market, and subsequently globally. While we didn’t take into account too many asset management mergers – as that could be a top 20 list in itself with – this one was one of the most read on The TRADE during 2022, hence its inclusion.
Goldman Sachs completed the acquisition of Netherlands-headquartered NN Investment Partners from NN Group N.V. in April 2022 having first announced the takeover the previous August.
The deal, for €1.7 billion, increased Goldman Sachs’ assets under supervision (AUS) to approximately $2.8 trillion, reinforcing its position as a top five active asset manager globally. In Europe, its AUS was slated to be more than $600 billion, aligning with plans to scale its European business.
As part of the acquisition, NN Investment Partners was integrated into Goldman Sachs Asset Management, with almost 1000 of its employees joining the company, while the Netherlands became an important location in Goldman Sachs’ European business.
“The combination further strengthens our platform and provides an expanded product range and dedicated service to clients globally, bringing together the best of both organisations to deliver investment solutions at scale, across all asset classes,” Goldman Sachs said in a statement at the time.
Specifically, the acquisition added new capabilities and increased growth in products such as European equity and investment grade credit, sustainable and impact equity, and green bonds – at the time NN Investment Partners had ESG criteria integrated into around 90% of its AUS.
Demonstrably, more and more, companies are looking to ‘fill the gaps’ in their offerings, not by growing but by incorporating those who are already primed…
16. Redburn Atlantic Equities is born (2023)Just last year saw a huge deal for the market between Redburn and Atlantic Equities, with ambitious plans for the new entity. The market can only wait and see whether the execution will do these expectations justice.
European agency broker and equities research specialist Redburn and US equity brokerage Atlantic Equities agreed to merge their operations under Redburn’s parent company Rothschild & Co back in April 2023.
Completed in August, the deal was aimed at creating a London-headquartered transatlantic broker, offering clients broader research coverage, corporate access and research sales alongside agency execution capabilities.
By combining US and European research together in London, the new firm – Redburn Atlantic – benefits from a global industrial approach and offers research and execution services for 700 institutional investors with distribution teams based in London, New York, Boston, Paris, Frankfurt, Geneva and Madrid.
At the time the transaction was completed, the combined teams consist of more than 90 research analysts, 43 distribution and 14 corporate access professionals.
Andrew Quick, global head of execution services at Redburn Atlantic, told The TRADE at the time: “With more names under coverage and more access to companies, we anticipate our market share will continue to grow in Europe and especially the US.
“As the public equities execution arm of Rothschild & Co, Redburn Atlantic looks forward to offering IPOs, placings and block trades as well as assisting corporate clients in buybacks, dribble-outs and stake builds which in turn should offer our clients even more unique liquidity opportunities.”
17. State Street expands remit through CF Global acquisition (2024)Outsourced trading, love it or hate it, big things are happening. Just this year, the completion of a State Street deal bumped it into the ranks of outsourced trading giants such as Northern Trust and UBS, extending its remit in outsourced trading to the UK and Europe.
State Street completed its acquisition of outsourced trading firm CF Global this year for an undisclosed sum, exactly one year after the deal was revealed by The TRADE in February 2023.
The acquisition gives State Street access to CF Global’s extensive relationships in the space as a segregated outsourced trading entity. Prior to the acquisition of CF Global, State Street had existing outsourced trading offerings in the Americas, APAC and Middle East. CF Global will extend this remit to the UK and Europe.
Speaking at the time, Dan Morgan, global head of portfolio solutions at State Street, said: “Outsourced trading enables organisations to access new asset classes, prepare for regulatory shifts and navigate global markets while allowing them to focus on their strategic outcomes on behalf of their clients. The addition of CF Global Trading brings industry-leading expertise that strengthens our current outsourced trading services.”
At the time the deal was confirmed by State Street the firm asserted that the deal would also allow it to offer a complete global trading solution as part of its front-to-back State Street Alpha platform.
Specifically, clients can expect greater capabilities in multi-asset class execution, modular-based solutions, and 24-hour global trading following completion.
18. Deutsche Borse and Simcorp unanimously approved (2023)
Who doesn’t love it when a plan comes together? Next up on the list is the $4.3 billion takeover of Simcorp by Deutsche Börse.
Deutsche Börse entered into the binding agreement to acquire SimCorp in an all-cash public takeover in April 2023, with the deal pushed through in August the same year following regulatory approval.
The acquisition had a minimum acceptance level of 50% plus one share of all SimCorp shares, with SimCorp’s board of directors having unanimously recommended to shareholders acceptance of the offer.
The pair had an extensive existing partnership even before this latest transaction. At the time, Theodor Weimer, chief executive at Deutsche Börse, said: “SimCorp A/S is a perfect fit strategically and culturally. It is one of the leading global investment management software providers, serving the largest asset managers and asset owners worldwide.
“Through our existing partnership we have come to know and appreciate the management of SimCorp A/S and the strategic transformation they have initiated, backed by a highly competent team of skilled employees.In addition to the SimCorp A/S transaction, we have decided to merge ISS and Qontigo. Both transactions will bring long-term growth, sizeable and tangible synergies, and a significant increase of our recurring revenues.”
The Qontigo brand has since been discontinued as its two main components – the analytics business Axioma and the index business STOXX – evolved into separate value propositions under the Deutsche Börse Group’s Horizon 2026 strategy.
The Investment Management Solutions segment is now comprised of SimCorp, including Axioma’s analytics business, and ISS STOXX, which comprises the ESG and index business.
Buying as opposed to building is a strategy which extends across asset classes, with firms appreciating the importance of plugging gaps in the pursuit of innovation. One demonstrable example came in 2011, where LSEG secured full ownership of index provider FTSE International.
LSEG upped its share from an initial 50% for a total cash consideration of £450 million in a bid to deepen its derivatives and index product offerings.
LSEG confirmed to the market that its intention was to invest to accelerate growth in FTSE’s tradable index business, expanding the product range and offering FTSE’s products to LSE’s international customer base.
Speaking to The TRADE at the time, David Lester, LSEG head of information services and chair of FTSE, said that the acquisition of the remaining 50% of FTSE would “provide the exchange with full control and greater flexibility to integrate the index company into its existing portfolio of businesses and future strategy”.
In the derivatives market, the acquisition led to a closer collaboration across the combined LSEG and FTSE businesses to develop index products and derivative contracts to trade against them.
The company focused on developing a joint package of exchange-traded fund (ETF) products to issuers, use the LSEG and MillenniumIT brand and global relationships to develop index licensing opportunities, and develop new fixed income products.
In addition, FTSE’s real-time calculations and data fees were enhanced by the deal.
20. The birth of TD Cowen (2023)Hands are shaken over deals every day, but rarely do two sides benefit in equal measure – however, the birth of TD Cowen demonstrated a prime example of a mutually beneficial relationship for relevant clients.
TD acquired Cowen in an all-cash $1.3 billion deal in March 2023 following the receipt of regulatory approvals the month prior, with the entity now known as TD Cowen.
The deal, first announced in August last year, was made in a bid to advance TD’s US investment banking growth strategy, adding new capabilities in US equities to TD’s remit. However, following the transaction, the Cowen client base was also expected to benefit from TD’s balance sheet and capital markets business.
The bank said the acquisition will create an integrated North American dealer that will significantly advance its growth strategy in the region through the addition of Cowen’s US equities sales trading, and execution, as well as research capabilities.
The combined firms’ pro-forma global revenues was expected to increase by more than a third to around $6.8 billion across advisory, capital markets, equity execution and research.
Following close of the transaction, Jeffrey Solomon, current chair and chief executive of Cowen was set to join the senior leadership of TD Securities, reporting to Riaz Ahmed, president and chief executive officer at TD Securities and group head of wholesale banking, TD Bank Group.
Later the same year, in December, TD Cowen offloaded its outsourced trading and prime brokerage business to commodities specialist, Marex. The business has been rebranded as Marex Prime Services and Market Outsourced Trading.
20 deals for 20 years
So there you have it, a round-up of some of the key market movements over The TRADE’s dynamic 20-year history. As the trading industry moves forward at an ever-accelerating pace, M&As have, and continue to, shake up market structure and bring with them huge impact.
The future of trading is bright, and the significance of these deals across various sectors and asset classes, makes clear how seriously firms are taking demands from the market.
Whether it be through acquisitions to “plug gaps,” joint ventures to share expertise, or investment in technological innovation, what is clear is that amidst mounting regulatory pressures, increased globalisation, and general uncertainty as regards future trading rules, the surge of M&A is only set to continue – and The TRADE will be here to cover the news!