GTS Moves into FX with HC Tech Buy
Posted by Colin Lambert. Last updated: October 11, 2023
Non-bank market maker GTS has moved into the foreign exchange market with the acquisition of the FX assets of non-bank trading firm HC Technologies, the terms of the deal were not disclosed, other assets of HC tech remain with the firm.
GTS was involved in the FX market in the middle of the first decade of this century, when high frequency trading firms managed to establish a foothold in the market, however it’s influence and interest drifted as market mechanisms like randomisation took hold and the level of competition from other non-bank firms grew. Since then, it has established itself in equities, OTC stocks, futures, options, fixed income and ETF markets – and says it is one of the largest designated market makers on the New York Stock Exchange.
Approximately 50 employees from HC Tech will join GTS as part of the transaction, bringing total headcount for the firm to approaching 400.
“Enhanced liquidity through sophisticated, real-time pricing across asset classes and geographies is a hallmark of GTS’s market making activities,” says Ari Rubenstein, co-founder and CEO of GTS. “This acquisition allows us to bring pinpoint pricing to the volatile FX marketplace – pricing that GTS excels in.
“The FX marketplace is growing rapidly and is an important component of the global financial ecosystem,” he continues. “The recent geopolitical and global economic turmoil has created a huge surge in foreign exchange and interest rate volatility, creating the need for marquee FX market making and pricing. HC Tech has built a world-class FX business and combining those trading assets with GTS’s capabilities will be immediately additive to the FX trading marketplace.”
HC Tech partner Cary Rosenwald will transition to GTS to run the FX business, and the firm adds “most” HC Tech will join him as part of the acquisition. “We’re not only joining a top global market maker but a firm with global status as a steward of the market with a broad track record of success and making value-adding acquisitions,” he says. “FX trading worldwide has grown significantly in recent years and the combined business is poised to take off.”
HC Tech continues, with fellow defendants, to face a lawsuit over allegations it had administrative access to the book on the Currenex platform, a move that allowed it to view all orders on the platform at any given time.