ITG Europe, a unit of Investment Technology Group, plans to acquire European crossing network E-Crossnet, confirmed Alasdair Haynes, CEO of ITG Europe. Financial terms were not disclosed. "It's no secret that we've always believed that there should be one crossing network in Europe," he said in an interview. "When E-Crossnet came to us with the idea they were looking for new ownership, we worked quickly to clinch a deal."
E-Crossnet is used by institutional investors to trade European stocks; it is jointly owned by Barclays Global Investors, Baring Asset Management, Cazenove Fund Management, Deutsche Asset Management, Henderson Global Investors, Hermes Investment Management, Legal & General Investment Management, Merrill Lynch Investment Managers, Schroder Investment Management, Standard Life Investments, State Street Corp., UBS Global Asset Management and West LB Asset Management. According to a news release from ITG, all E-Crossnet shareholders are willing to sell their stakes.
"We're a firm believer in the power of crossing networks for institutional investors to reduce trading costs and ensure best execution through transparency and efficiency," said Alan Brown, State Street CIO and co-head of State Street Global Advisors, in the news release. "This deal will enhance liquidity and so enable more access to this network, and that can only be a good thing."