GTS Acquires Barclays Designated Market Maker Trading Business at NYSE

DMMs facilitate price discovery through a combination of human judgement and the latest technology, said Tom Farley, NYSE Group president, in a statement. DMMs, which are unique to the NYSE, serve as a safeguard to investors and listed companies, according to Farley, and lower volatility for individual stocks, especially during complex market events like initial public offerings (IPOs) and the start of the trading day.

GTS's acquisition of Barclays' DMM will close in the second quarter. The financial terms of the deal were not disclosed.

"GTS's new role as a designated market maker reflects our commitment to providing more liquidity in more places, and to creating a better, more cost-efficient marketplace for retail and institutional investors and listed issuers," said Ari Rubenstein, co-founder and CEO of GTS, in a statement. "GTS is supporting efficient capital formation to drive the growth of listed companies. Becoming a DMM is a natural marriage of our floor trading expertise and cutting-edge technology."

Barclays DMM floor team will join GTS as part of the deal.

Joseph Mecane, managing director of the electronic equities and credit products business at Barclays, said in a statement the decision to sell the DMM trading business was more about it not being a good fit at the firm, as opposed to a lack of belief in the concept.

"We continue to believe in the DMM model, and in the benefits that it can bring to issuers," Mecane said. "However, with the evolving market structure, we also believe that a firm specializing in the technology of market making, such as GTS, is best suited to enhance the NYSE DMM business."