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Buy-side
Trading venues
Lit volumes on LSEG ’ s Turquoise Europe venue surge post-Brexit
Columbia Threadneedle agrees $ 845 million deal to acquire BMO European asset management business
The acquisition of BMO EMEA asset management arm will add $ 124 billion of AUM at Columbia Threadneedle , making it a top 35 global asset manager .
US asset management firm Columbia
Threadneedle Investments has agreed to acquire the European investment business of Canada ’ s BMO Financial Group for $ 845 million in cash .
Columbia Threadneedle ’ s parent company , Ameriprise Financial , confirmed that terms of for the deal had been agreed on 12 April and it is expected to close by the end of this year , subject to regulatory requirements .
It will add $ 124 billion of assets under management ( AUM ) to Columbia Threadneedle ’ s EMEA business , taking its total AUM to $ 671 billion , making it one of the top 35 asset managers globally and top 10 asset managers in the UK . “ Adding BMO ’ s EMEA asset management business is an exceptional growth opportunity . The transaction advances our strategy and enhances our geographic and asset class diversification , enabling us to serve more clients and meet more of their needs ,” said Ted Truscott , CEO of Columbia Threadneedle .
The deal is the latest in several major mergers on the buy-side as consolidation continues across the industry . Earlier this month , Amundi agreed to acquire Lyxor Asset Management from investment bank Societe Generale for € 825 million .
LSEG ’ S EUROPEAN TRADING VENUE SAW LIT AVERAGE DAILY VOLUMES INCREASE 30 % FROM JANUARY TO MARCH 2021 .
Average daily volume ( ADV ) on the London
Stock Exchange Group ’ s ( LSEG ) European lit order book has increased 30 % in the first three months following Brexit .
Lit ADV at Turquoise Europe – the LSEG ’ s European-based trading venue which went live on 30 November before the end of the Brexit transition period – increased by 10.1 % from January to February and then by a further 20.5 % from February to March .
Turquoise Europe ’ s lit growth in ADV per month outperformed its competitors , with statistics showing that rival exchange Cboe Europe ’ s lit venue ADV increased 21 % in the first three months of the year , while Aquis Europe ’ s lit ADV grew 17.4 %.
LSEG ’ s Turquoise Europe trading venue , based in the Netherlands , went live at the end of last year as many exchanges established EU-based trading venues to ensure they could continue trading for clients given failures to reach an equivalence agreement .
“ Since we saw that migration in January kick off , we have seen significant growth across Turquoise Europe , and what we have been really delighted to see was the growth on Turquoise Lit ,” head of Turquoise Europe , Adam Wood , told The TRADE .
Wood added that growth in Turquoise Europe ’ s lit order book in the first three months of the year had been driven to its liquidity provision , retail participation , and new demand from market participants for securities from the central and eastern Europe ( CEE ) markets .
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