London Stock Exchange buys cloud-based trading tech startup TORA for $325 million to boost digital drive
London Stock Exchange Group (LSEG) has acquired cloud-based technology startup TORA in a $325 million deal to bolster its digital ambition. As mainstream adoption of cryptocurrencies grows, the acquisition will enable LSEG the ability to better compete in Asia and North America where TORA has a presence with offices in Hong Kong, New York, Singapore, and Tokyo among others.
In a statement on Tuesday, the exchange said the acquisition would also add digital assets trading to its roster and enhance its trading and banking solutions business across Asia, North America, and Europe. The deal is expected to close in the second half of this year, subject to regulatory approvals. Following completion of the deal, TORA will be part of LSEG’s data and analytics division.
TORA offers an order and execution management system (OEMs) and a portfolio management system (PMS) across equities, fixed income, foreign exchange, derivatives, and digital assets trading.
TORA was founded in 2004 by CEO Robert Dykes and Keith Ducker. Tora is a cloud-based front-to-back office technology provider for the buy-side that supports customers trading multiple asset classes including equities, fixed income, and digital assets across global markets.
The startup provides everything you need to run a fund: portfolio, risk, order and execution management systems, and compliance and analytics engines – all built in-house and available individually, or as an integrated, unified platform.
“Acquiring TORA will enable LSEG to deliver critical “at trade” capabilities for the buy-side, seamlessly connecting into our next generation desktop Workspace,” said Dean Berry, group head of trading and banking solutions at LSEG.
“Combining TORA’s international footprint with LSEG’s global reach will drive further growth and we look forward to collaborating in order to continue this expansion.”
The move is the latest in a growing trend of major financial institutions swooping on digital firms in the expectation they will upend trading processes in the sector.
The purchase of TORA is one in a series of recent acquisitions by LSEG. In 2019, LSEG bought a stake in London-based Nivaura to bet on a digital platform that was behind the world’s first automated cryptocurrency-denominated bond issuance.
“Bringing together TORA’s compelling trading solution with LSEG’s wealth of data has the potential to create a powerful toolkit for our customers, enabling them to trade more efficiently,” said Robert Dykes, chief executive officer at TORA.