REDI

Last updated

REDI is Thomson Reuters' EMS (execution management system) platform. Acquired in 2017, Thomson Reuters REDI allows users to access more than 175 execution brokers to route Equities, Futures or Options orders globally, as well as over 20 prime and clearing brokers. [1] According to the company, there are over 5,000 active users of REDI worldwide.

Contents

Early history

REDI is one of the most enduring brands in the electronic trading space, tracing its roots to 1992 when it was launched by market maker and New York Stock Exchange (NYSE) specialist Spear, Leeds & Kellogg. The platform, which stood for “Rapid Execution Dot Interface,” was one of the industry’s first electronic order entry systems.

Goldman Acquisition

REDI became a Goldman Sachs platform in 2000 following the firm’s $6.5B acquisition of SLK. [2] Under Goldman, functionality was steadily added to the platform, including options and futures trading capabilities in 2000, fix-based OMS integration in 2001, portfolio and spread trading capabilities in 2003 and full global connectivity in 2005. [3] By 2013, it was the most widely used EMS by hedge funds and #3 by asset managers, according to the Tabb Group. [4]

Spinoff

In early 2012, Goldman announced its plans to spin off the REDI business as an independent company in order to make it a true multi-broker platform. [5] On July 17, 2013, Goldman announced it had completed the sale of a majority stake in the independent REDI to a consortium of investors including Bank of America Merrill Lynch, Barclays, BNP Paribas, Citadel and Lightyear Capital. [6] The next day, Bank of America Merrill Lynch announced that it would transfer its own proprietary EMS, InstaQuote, to REDI as part of its investment. [7]

Thomson Reuters Acquisition

In early 2017 Thomson Reuters announced the completion of its acquisition of REDI [8] Terms were not disclosed. According to Michael Chin, managing director and global head of trading at Thomson Reuters, the firm plans to integrate REDI into "its pre-trade and post-trade workflow services, and its Eikon financial analysis solution." [9]

Related Research Articles

Investment banking pertains to certain activities of a financial services company or a corporate division that consist in advisory-based financial transactions on behalf of individuals, corporations, and governments. Traditionally associated with corporate finance, such a bank might assist in raising financial capital by underwriting or acting as the client's agent in the issuance of debt or equity securities. An investment bank may also assist companies involved in mergers and acquisitions (M&A) and provide ancillary services such as market making, trading of derivatives and equity securities, FICC services or research. Most investment banks maintain prime brokerage and asset management departments in conjunction with their investment research businesses. As an industry, it is broken up into the Bulge Bracket, Middle Market, and boutique market.

<span class="mw-page-title-main">Goldman Sachs</span> American investment bank

Goldman Sachs is an American multinational investment bank and financial services company headquartered in New York City.

In financial services, a broker-dealer is a natural person, company or other organization that engages in the business of trading securities for its own account or on behalf of its customers. Broker-dealers are at the heart of the securities and derivatives trading process.

Bulge bracket The largest investment banks

The group of bulge bracket banks comprises the world's largest multi-national investment banks whose investment banking clients are usually large corporations, institutional investors and governments. There is no definitive list of bulge bracket banks.

Prime brokerage is the generic name for a bundled package of services offered by investment banks, wealth management firms, and securities dealers to hedge funds which need the ability to borrow securities and cash in order to be able to invest on a netted basis and achieve an absolute return. The prime broker provides a centralized securities clearing facility for the hedge fund so the hedge fund's collateral requirements are netted across all deals handled by the prime broker. These two features are advantageous to their clients.

Piper Sandler Companies American financial services company

Piper Sandler Companies is an American independent investment bank and financial services company, focused on mergers and acquisitions, financial restructuring, public offerings, public finance, institutional brokerage, investment management and securities research. Through its principal subsidiary, Piper Sandler & Co., the company targets corporations, institutional investors, and public entities.

<span class="mw-page-title-main">Cowen Inc.</span> American investment bank

Cowen Inc., is an American multinational independent investment bank and financial services company that operates through two business segments: a broker-dealer and an investment management division. The company's broker-dealer division offers investment banking services, equity and credit research, sales and trading, global prime brokerage, outsourced trading, global clearing and commission management services. Cowen's investment management segment offers actively managed alternative investment products. Founded in 1918, the firm is headquartered in New York and has offices worldwide. Cowen claims it is known for successfully identifying emerging industries early on, especially the emerging cannabis industry.

Merrill Lynch & Co. Defunct American investment bank

Merrill Lynch & Co., formally Merrill Lynch, Pierce, Fenner & Smith Incorporated, was a publicly-traded American investment bank that existed independently from 1914 until January 2009 before being acquired by Bank of America and rolled into BofA Securities.

Peter R. Kellogg, is an American businessman with a net worth estimated by Forbes at around $3.4 billion, primarily derived from his leadership of Wall Street firm Spear, Leeds & Kellogg.

FactSet Research Systems Inc., trading as FactSet, is an American financial data and software company headquartered in Norwalk, Connecticut, United States. The company provides integrated data and software. For fiscal year 2021, FactSet's total ASV and professional services revenues were $1.68 billion.

Intercontinental Exchange American exchange and clearing house company

Intercontinental Exchange, Inc. (ICE) is an American company formed in 2000 that operates global financial exchanges and clearing houses and provides mortgage technology, data and listing services. Listed on the Fortune 500, S&P 500, and Russell 1000, the company owns exchanges for financial and commodity markets, and operates 12 regulated exchanges and marketplaces. This includes ICE futures exchanges in the United States, Canada and Europe, the Liffe futures exchanges in Europe, the New York Stock Exchange, equity options exchanges and OTC energy, credit and equity markets.

Turquoise is an equities trading platform, created by nine major investment banks in 2008. The aim was to provide dealing services at a 50% discount to traditional exchanges. It is a hybrid system that allows trading both on and off traditional exchanges. The system was advertised as a "pan-European platform based in London".

Markit Ltd. was a British financial information and services company with over 4,000 employees, founded in 2003 as an independent source of credit derivative pricing. The company provides independent data, trade processing of derivatives, foreign exchange and loans, customised technology platforms and managed services. The company aims to enhance transparency, reduce financial risk and improve operational efficiency. Its client base includes institutional participants in the financial marketplace. On 12 July 2016, Markit and IHS Inc. merged in an all-stock merger of equals to form IHS Markit. IHS Markit merged with S&P Global.

Investment Technology Group, Inc. was a United States-based multinational agency brokerage and financial markets technology firm aimed at a hedge fund and asset management clientele. One of the first suppliers of electronic trading services, ITG launched the industry’s second anonymous electronic trade matching system, POSIT, in 1987. ITG has since expanded its business to include tools for portfolio management, pre-trade analysis, order management, trade execution, and post-trade evaluation.

Instinet is an institutional, agency-model broker that also serves as the independent equity trading arm of its parent, Nomura Group. It executes trades for asset management firms, hedge funds, insurance companies, mutual funds and pension funds. Headquartered in New York City, the company provides sales trading services and trading technologies such as the Newport EMS, algorithms, trade cost analytics, commission management, independent research and dark pools.

BofA Securities, Inc., previously Bank of America Merrill Lynch (BAML), is an American multinational investment banking division under the auspices of Bank of America. It is not to be confused with Merrill, the stock brokerage and trading platform subsidiary of Bank of America.

Marex (British company) UK-based tech-enabled liquidity hub

Marex is a UK-based diversified global financial services platform, connecting clients to global energy, metals, agricultural and financial markets. Across its businesses, Marex provides high value add services in Market Making, Execution and Clearing, Hedging and Investment Solutions, Price Discovery and Data & Advisory.

Merrill, previously branded Merrill Lynch, is an American investment management and wealth management division of Bank of America. Along with BofA Securities, the investment banking arm, both firms engage in prime brokerage and broker-dealer activities. The firm is headquartered in New York City, and once occupied the entire 34 stories of 250 Vesey Street, part of the Brookfield Place complex in Manhattan. Merrill employs over 14,000 financial analysts and manages $2.3 trillion in client assets. The company also operates Merrill Edge, an electronic trading platform.

EquiLend is a securities lending platform started in late 2001 by a consortium of leading financial services institutions. Founding members include Barclays Global Investors, Bear Stearns, Goldman Sachs, JPMorganChase, Lehman Brothers, Merrill Lynch, Morgan Stanley, Northern Trust, State Street, and UBS Warburg. Its first CEO was Ian M. Drachman. The firm is now led by Brian P. Lamb.

Goldman Sachs controversies

Goldman Sachs controversies are the controversies surrounding the American multinational investment bank Goldman Sachs. The bank and its activities have generated substantial controversy and legal issues around the world and is the subject of speculation about its involvement in global finance and politics. In a widely publicized story in Rolling Stone, Matt Taibbi characterized Goldman Sachs as a "great vampire squid" sucking money instead of blood, allegedly engineering "every major market manipulation since the Great Depression."

References

  1. ↑ "Executing Broker Network". REDI. Retrieved 2015-05-26.
  2. ↑ Gasparino, Charles (September 11, 2000). "Goldman Sachs Agrees to Acquire Market Maker Spear Leeds & Kellogg". Wall Street Journal.
  3. ↑ "Our History". REDI. Retrieved 2014-09-21.
  4. ↑ "Buyside OMS & EMS: A Market Snapshot". Tabb Group. January 28, 2013.
  5. ↑ Schmerken, Ivy (February 8, 2012). "Goldman Sachs to Spin Off REDI Tech Group". Wall Street & Technology.
  6. ↑ "Goldman Sachs Completes Sale of Majority Equity Stake in REDI". Goldman Sachs. July 17, 2013.
  7. ↑ "Bank of America Merrill Lynch Transfers InstaQuote to REDI". Bank of America Merrill Lych. July 18, 2013.
  8. ↑ Brazier, John (January 17, 2017). "Thomson Reuters Completes Redi Acquisition". Waters.
  9. ↑ Shashoua, Michael (January 18, 2017). "Thomson Reuters Sets New Foundation For REDI". Intelligent Trading Technology.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.