Capital markets technology consultancy Adaptive acquires low-latency trading specialist Real Logic

Adaptive Financial Consulting (Adaptive), the global e-commerce advisory firm, today announces the acquisition of Real Logic, a low-latency trading technology developer.

The acquisition of Real Logic is a key strategic development for Adaptive, as it brings Aeron and Aeron Cluster, open-source software used by financial firms around the world that underpins Adaptive’s development platform, Hydra Platform, internally – improving its ability to provide bespoke trading systems solutions for clients.

Real Logic provides front office solutions for financial services firms in capital markets, developing low latency trading systems using Aeron – their trading systems-focused open source messaging system, and Aeron Cluster, a technology that provides consensus fault tolerance. Aeron is the market-leading messaging system for performance-minded commercial organizations, on-premises and in the cloud, and is the product of years of innovation from the Real Logic team.

Adaptive Financial Consulting builds and operates bespoke trading systems across all asset classes for financial services firms that want to own their technology to differentiate themselves and be competitive over the long term. The acquisition strengthens Adaptive’s capabilities in providing this service and follows a long-standing relationship between the two companies. Aeron technology also underpins Adaptive’s Hydra platform – a high-level development platform that accelerates the development of trading systems for its clients.

Key benefits of the acquisition include:

● Expand Adaptive’s capabilities to provide clients with bespoke technology-intensive, low-latency, highly available trading systems capable of handling significant throughput.
● Accelerate the delivery and construction of trading solutions while giving clients greater choice over the type and means of system delivery.
● Consolidate Aeron and Hydra Platform development teams (more info in Notes to Editor) to become the same technology stack. Customers of the respective companies will continue to have access to the same development teams and give Adaptive greater scale to serve even larger customers.
● Continued and additional investments in Aeron and Aeron Cluster open source technology and community.
● Added senior expertise with Real Logic founder Martin Thompson joining Adaptive as Head of Platform. Prior to Real Logic, Martin was the Technical Director of LMAX and is considered one of the world’s leading experts in low latency, high performance systems.
● Todd Montgomery, who was previously CTO of 29West, where he designed a low-latency messaging solution widely used in capital markets and a renowned expert in the field and in protocol design, also joins Adaptive as Fellowship in Engineering in conjunction with acquisition of Real Logic.

Matt Barrett, co-founder and CEO of Adaptive, said, “As the technology arms race in financial services intensifies, our acquisition of Real Logic is a natural next step in Adaptive’s growth as we celebrating our tenth anniversary – bringing an exceptional business that we have worked closely with and its technology in-house. Not only does the acquisition bring together world-class development teams and low-latency trading experts under one roof, it gives us the scale and capabilities to become a one-stop-shop to provide comprehensive trading solutions to most sophisticated capital markets companies. The open source nature of Aeron and Aeron Cluster will be central to our strategy going forward, and we intend to drive broad adoption of the technology across the industry. We welcome Martin, Todd and the team, and are deeply excited for the next chapter of Adaptive.

Martin Thompson, co-founder of Real Logic, commented: “Trading technology is at an inflection point. As institutions and commercial companies change their approach to technology, Adaptive offers the expertise and scale to meet this significant and growing demand. We and the Real Logic team are excited to join our long-time collaborators to jointly shape the future of financial markets technology.
Todd Montgomery commented, “Financial markets firms are increasingly realizing that technology is not a cost center, but a revenue generator. Combining our strengths with Adaptive will allow us to serve these businesses, as companies move away from out-of-the-box technology, which is no longer enough to differentiate themselves, and move towards getting to grips with front-office innovation. .

Adaptive was advised by Strata Partners on the acquisition.