RBC Capital Markets is buying the broker-dealer business and certain other assets of the Carlin Financial Group, a New York-based boutique broker dealer known for its trading and execution services and proprietary algorithms.
The transaction is expected to close in the first quarter of 2007. Pricing terms of the transaction were not disclosed. This transaction will enable RBC Capital Markets’ development of a best-in-class North American electronic execution platform for its investing clients.
The CFG Business trades approximately 35 million shares daily. The CFG Business has built a large following with emerging hedge fund managers, a professional group that executes a growing portion of all hedge fund trades and manages a significant percentage of all hedge funds in the US.
“This transaction will help us to meet our clients’ ever evolving needs by expanding our capabilities into options trading, future trading and order management,” says Jeremy Frommer the CEO of CFG. “I’m very pleased to return to RBC Capital Markets, where I spent the earlier part of my career, and we look forward to helping clients excel in this rapidly changing environment.”
“We believe that this acquisition allows us to create a leading North American electronic execution platform for investors and expand into multi-asset class electronic trading,” adds Greg Mills, the head of global equity sales and trading at RBC Capital Markets. “Emerging hedge fund managers, professional traders and other clients of the CFG Business will continue to receive the same high quality of service they’ve come to rely on, and will now also have access to the full range of capital markets products and services we offer in the US.”