As such, expansion into new markets via partnerships remains an attractive avenue for growth, as the latest one in the sector demonstrates. The partnership will see NYSE aim to grow ACE's technology to scale and accelerate its use among global financial institutions. ACE's platform enables investment banks and other agents to post and manage securities sales, and investors to search for offerings. Essentially, it allows broker-dealers to interact with thousands of investors on a transaction in the same manner they would a far smaller number under the traditional manual process.
Founded in 2010, ACE is run by former bankers from
Bank of America
Donaldson Lufkin & Jenrette
The head of global listings at NYSE, Scott Cutler, said the exchange aimed to lift efficiency in the institutional private market. "Our goal is to make the private placement process more transparent, efficient and auditable for issuers, investors and placement agents," he said in a statement. The NYSE will also be hoping it makes its business a more formidable competitor to new entrants.
Financial terms of the NYSE-ACE transaction were not disclosed and it is not known whether the NYSE plans to lift its stake in the future. A spokeswoman for NYSE declined to comment further on the deal.
-- Written by Jane Searle in New York