Acquisition expands on the firm’s established capabilities in custody and clearing.
PEAK6, the Chicago-based investment and technology firm, announced the acquisition of Electronic Transaction Clearing, a custodian and clearing provider with an innovative, technology-driven approach to serving the institutional and professional trading marketplace.
ETC’s institutional orientation will expand PEAK6’s footprint in custody and clearing and is a direct complement to one of its core businesses, Apex Clearing, which is primarily focused on the retail marketplace. The transaction will align ETC and Apex, two firms with a shared mission to improve foundational financial processes with technology, and position both organizations as alternatives to traditional custodians through the delivery of flexible, customizable, digital solutions that facilitate speed and innovation.
“We look forward to exploring how stronger alignment between the ETC and Apex Clearing brands can result in growth and expansion for both companies and their respective clients,” said Bill Capuzzi, partner at PEAK6 and Chief Executive Officer of Apex Clearing. “Combining each firm’s distinct philosophy of leveraging technology to enhance service and increase efficiency will strengthen our commitment to leading the digital revolution in custody and clearing.”
The business will report to Mr. Capuzzi and continue to operate out of offices in Los Angeles and New York. Freeman & Co. acted as financial advisor to ETC. Terms of the transaction were not disclosed.
PEAK6 is a private investment and technology firm started by Jenny Just and Matt Hulsizer in 1997. PEAK6 began with a simple premise: to apply technology to make the options market operate more efficiently—and to realize great financial returns in the process. More than two decades later, we invest in, own and start businesses that allow us to apply our unique blend of technology and operational expertise to make industries and businesses perform better. Our core businesses include Apex Clearing, a technology-driven clearing and custody provider, National Flood Services, a leading BPO for the flood insurance industry, and PEAK6 Capital Management, a proprietary trading group specializing in equity options.
Apex Clearing is a custody and clearing engine that’s powering the future of digital wealth management. As a technology firm, Apex Clearing delivers speed, efficiency and flexibility to firms ranging from innovative start-ups to blue-chip brands focused on growth. Apex Clearing’s fully integrated, customized solutions allow registered investment advisors (RIAs), digital advisors, fintech firms, broker-dealers and full-service firms to reach more investors and deliver the seamless digital experiences consumers expect. Founded in 2012 and based in Dallas – with offices in New York City, Chicago and Portland, Oregon – Apex Clearing Corporation is registered with the SEC, a member of FINRA and a participant in SIPC.
Electronic Transaction Clearing is a brokerage and clearing company offering sophisticated clearing, settlement and custodial services to securities industry participants, such as broker-dealers, ATSs (alternative trading systems), routing firms, professional trading firms, black-box trading firms and hedge funds. Since its regulatory approval in July 2009, the company has routinely cleared a significant percentage of all U.S. daily equities share volumes. Electronic Transaction Clearing is a member of FINRA, SIPC and all major U.S. stock exchanges.