GTS agreed to buy Cantor Fitzgerald LP businesses that handle exchange-traded funds and orders from retail investors, becoming the latest high-frequency trading firm to start directly serving consumers.
Two units will shift to GTS, along with about 35 employees, the company said Friday in a statement that didn’t disclose financial terms. One trades ETFs with customers and on exchanges.
The other, a wholesale market-making business, executes stock and ETF trades for retail investors. Bloomberg first reported a month ago that the companies were discussing a deal.
The acquisition makes GTS look more like competitors Citadel Securities and Virtu Financial Inc. All three are automated traders that help conduct transactions at the New York Stock Exchange floor.
But Citadel and Virtu are giants in handling orders from retail brokers, and GTS will try to chip away at their dominant position.
“Clients asked for a new level of innovation and competition in this space, and GTS is happy to deliver,” co-founder and Chief Executive Officer Ari Rubenstein said in an interview.