The market research arm of Standard & Poor’s said it acquired QuantHouse, a supplier of high-speed trading technology, including market data feeds.
S&P Capital IQ said the acquisition “will provide our clients with access to exchange pricing globally, including securities valuations and portfolio analytics, throughout all our desktop and enterprise solution,’’ according to Lou Eccleston, President of S&P Capital IQ and S&P Indices. “In addition, the extensive capabilities QuantHouse brings will enable S&P Capital IQ to build our own unique real-time monitors, derived data sets and analytics.’’
QuantHouse supplies technologies such as a custom chip for high-speed trading that allows users to process market data in 600 billionths of a second.
The chip, which "offloads" the processing of market data from other tasks, connects to the firm’s existing feed handler software.
The firm also provides frameworks for developing trading algorithms, proximity hosting services and order routing services. Its customers include hedge funds, market makers, proprietary desks and latency-sensitive sell-side firms.
"Together, we can focus on developing a new generation of alpha-generation tools, low-latency transaction infrastructure and integrated low-latency data feeds to maximize offerings and strengthen S&P Capital IQ's competitive positioning," said Pierre-Francois Filet, chairman and co-founder, QuantHouse.
S&P also bought R2 Financial Technologies recently and is trying to create “the most comprehensive market data and risk analytics platforms in the industry.”
QuantHouse's 90 employees, based in Paris, London and New York, will become part of S&P Capital IQ's Enterprise Solutions unit.
Terms of the deal were not disclosed.
In February, QuantHouse began offering co-loaction services at CME Group’s new Aurora, Illinois, data center. That will allow trading firms to place equipment in close proximity to CME’s Globex matching engines.
Tom Steinert-Threlkeld writes for Securities Technology Monitor.