Instinet is to step up its ambitions in the US options market with an agreement to acquire substantially all the business and assets of derivatives trading technology vendor Torc Financial.
Led by trading technology and options industry veteran John Duffell, Torc offers a full suite of derivatives trading technologies, including TOP (TradeSpeed Options Professional), a multi-asset class application that offers integrated options analytics and execution capabilities and is integrated with most major US-based prime brokers; and RiskPro, which allows for the real-time tracking of risk metrics across positions, accounts, groups, asset classes and trading desks.
Instinet executives say the deal will propel the firm to the forefront of electronic derivatives trading, and in particular the fast-growing US options space.
US options volumes have seen a nearly 20% CAGR (compound annual growth rate) since 1995, according to the Options Clearing Corporation. A February 2009 survey by the Tabb Group found that 63% of options traders expected to increase their options volume in 2009.
Terms of the transaction were not disclosed.