Portware announced on Wednesday it has completed its acquisition of the key technology assets of Aritas Group, formerly known as Pipeline Trading Systems. Terms of the deal were not disclosed.
The acquisition includes the company’s algorithm switching engine and its AlphaPro product, as well as seventeen patents covering predictive analytics and algorithmic optimization technology. Aritas has sold the rest of its patents to ITG and has ceased operations.
Pipeline hit the skids last year after the Securities and Exchange Commission sla pped the firm with a $1 million fine for not disclosing that much of the liquidity in its dark pool actually came from an affiliate. The company changed its name to Aritas and hired former Liquidnet honcho Jay Biancamano to try to clean things up.
Though customers fled Pipeline’s dark pool, AlphaPro and its switching engine remained popular. Now that they are being transferred to Portware, Biancamano will be joining the broker-neutral trading firm as well.
Portware is rebranding both Alpha Pro and the switching engine as Portware Alpha Vision. The combined product switches between algos and adjusts to changing market conditions in real-time to maximize alpha and minimize market impact.
Alfred Eskandar, chief executive officer of Portware, said in a statement that the system’s artificial intelligence improves trading efficiencies and enhances execution quality.
“The response we’ve received since we announced this new model has been overwhelming,” Eskandar said. “Four top-tier global investment banks and several regional brokers are participating, and multiple clients are already live on the system, including leading pension funds, asset managers and hedge funds.”
Though Aritas still exists as a legal entity, its broker-dealer is being deregistered and the company is winding down.
