Automated market maker GTS announced that its subsidiary, GTS Securities LLC, plans to become a Designated Market Maker (DMM) on the New York Stock Exchange. GTS hopes to achieve this by acquiring Barclays PLCs DMM trading business and merge latest technology with unique human elements of NYSE floor.
Upon completion of the Barclays DMM deal, GTS will become the DMM for more than 1,200 listed securities, including U.S. and international blue chip corporations. GTS is an automated market maker for equities, ETFs, commodities, futures, foreign exchange and interest rate products,
GTSs new role as a Designated Market Maker reflects our commitment to providing more liquidity in more places, and to creating a better, more cost-efficient marketplace for retail and institutional investors and listed issuers, said Ari Rubenstein, co-founder and CEO of GTS. GTS is supporting efficient capital formation to drive the growth of listed companies. Becoming a DMM is a natural marriage of our floor trading expertise and cutting-edge technology. We look forward to building relationships with issuers and to serving them in this important role.
DMMs play an essential role in enhancing market quality by maintaining fair and orderly markets and facilitating price discovery through a combination of human judgment and the latest technology, said Tom Farley, NYSE Group President.The DMM model, unique to the NYSE, provides an irreplaceable safeguard to investors and listed companies and is proven to lower volatility for individual stocks. This is especially critical during complex market events, such as IPOs and the start of trading each day.
Farley added, GTS brings new energy, a commitment to technology innovation and unique expertise to the NYSE floor which will benefit our listed companies.
Virtually all of the Barclays DMM floor team is expected to join GTS as part of the transaction. GTS will work closely with Barclays to ensure a seamless transition of staff to its technology platform as well as communication with issuers upon completion of the transaction.
We continue to believe in the DMM model, and in the benefits that it can bring to issuers. However, with the evolving market structure, we also believe that a firm specializing in the technology of market making, such as GTS, is best suited to enhance the NYSE DMM business, said Joseph Mecane, managing director in the Electronic Equities and Credit Products business at Barclays.
Rosenblatt Securities advised GTS on the transaction, according to a oppress statement. The transaction is expected to be finalized in the second quarter of the year. Financial terms were not disclosed.
