June 18 Trading firms RGM Advisors LLC and
Allston Trading LLC are in early merger discussions to combine
their automated trading on stock and futures markets, the Wall
Street Journal said on Tuesday, quoting people familiar with the
The two private high-frequency trading firms are major
customers of the New York Stock Exchange and futures platforms
operated by CME Group Inc and a deal would extend a
string of tie-ups as electronic traders combine or consider
selling out to better-capitalized rivals, the journal said. ()
Austin, Texas-based RGM Advisors trades in multiple asset
classes around the world and Chicago-based Allston Trading
operates on over 40 financial exchanges in 20 countries.
"From time to time, as interesting partnership opportunities
emerge or as we identify acquisition opportunities, Allston
management will of course consider them if they accelerate our
growth objectives but will not comment on any of those
discussions unless there is something concrete to communicate,"
said Allston Trading CEO Raj Mahajan.
A favored tool of hedge funds and other institutional
traders, high-frequency trading accounted for more than 60
percent of all futures volume in 2012 on U.S. exchanges like the
CME Group and IntercontinentalExchange Inc, according to
New York industry researcher The Tabb Group.
RGM did not immediately respond to a request for comment
outside usual business hours.
In late December, Getco Holding bought Knight Capital Group
Inc in a cash-and-stock transaction that valued Knight
at around $1.4 billion creating a dominant player in the