Trading Technologies acquires Trafix to add connectivity

Trading Technologies has completed the acquisition of Trafix, a specialist in exchange connectivity and market-data distribution. Financial terms were not disclosed. The deal brings Trafix’s network services, including low-latency links to trading venues, colocation connectivity and market-data delivery, into Trading Technologies’ execution and order-routing product set. Both firms confirmed existing customer connections and exchange links will continue to operate during the integration.

Trading firms and brokers that use listed-derivatives and high-frequency trading systems are the primary users of the combined offering. The acquisition is intended to shorten the path from receiving market data to entering executable orders and to reduce the number of separate vendors clients must manage.

Engineers from both companies will align Trafix’s technology stack with Trading Technologies’ product roadmap and integrate network services into TT’s execution software. The companies plan to prioritize maintaining service levels and latency performance during the transition and will migrate Trafix services into TT’s customer support and delivery model.

Trading Technologies, headquartered in Chicago, provides electronic trading software and order-execution systems for listed derivatives and other markets. Trafix supplies exchange connectivity, market-data distribution and network services used by trading firms and exchanges.

Industry consolidation among trading-technology and market-connectivity vendors has led firms to combine execution, routing and data-delivery capabilities. Trading Technologies said it will provide product integration timelines and client migration plans in the coming months and that Trafix services will remain available throughout the integration.