Investment Technology Group to Acquire RedSky Financial

Investment Technology Group, Inc., a leading provider of technology-based trading services and transaction research, today announced that it has entered into a definitive agreement to acquire privately-held RedSky Financial, LLC, a Chicago-based broker-dealer specializing in electronic multi-asset class trading with an emphasis on exchange-traded equity derivative products.

RedSky's advanced trading platform further diversifies ITG's asset class capabilities. RedSky's multi-asset trading platform, R3, facilitates high frequency trading for professional and institutional traders. R3 also offers routing for foreign exchange and fixed income trading. ITG plans to integrate R3's functionality into its existing execution management systems, Triton and Radical, to give clients consolidated access to all equities, equity options and futures. Today, Triton supports equities and Radical supports equities and options.

"The acquisition of RedSky provides ITG with an opportunity to add robust options and futures capabilities to our Triton and Radical front ends, as well as our algorithmic trading suite, creating versatile multi-asset execution management systems," said Bob Gasser, CEO and President of ITG. "ITG has long said that its value proposition is based on providing clients with comprehensive trading solutions that span the trading continuum, and the acquisition of RedSky's capabilities will further enhance ITG's position as a leader in the industry."

RedSky also offers direct access to multiple execution destinations and market data through an Application Programming Interface (API), which gives high-frequency traders the lowest possible latency when submitting and processing orders. An API allows traders using their own proprietary systems to connect directly to the markets via RedSky's routing infrastructure.

"We are excited to become part of ITG's comprehensive trading solutions," said Bob Fitzsimmons, Chief Executive Officer of RedSky. "The integration of RedSky's best-in-class futures and options trading technology into ITG's existing sophisticated trading products will provide clients with the ability to efficiently trade multiple asset classes from a single trading application."

Source: Investment Technology Group