Apex acquires CODA Markets to enhance trading and execution capabilities

Rick Steves

CODA operates an auction-based alternative trading system (“ATS”) and smart order router that optimize liquidity aggregation. 

Apex Fintech Solutions has acquired PDQ, the parent company of CODA Markets, in order to enhance its suite of trading and execution capabilities, meaning increased liquidity, improved execution quality, and new products for traders.

CODA operates an auction-based alternative trading system (“ATS”) and smart order router that aims to optimize liquidity aggregation.

Fragmented equity markets cause inefficiencies for investors

PDQ was founded by the former CTO of the New York Stock Exchange to pioneer equity market structure and innovate on-demand auction markets.

The firm’s subsidiary CODA is an agency-only FINRA regulated broker-dealer offering auction-based execution solutions. CODA takes time out of the trading process and its marketplace facilitates hundreds of thousands of competitive stock auctions every day, anchored by billions of shares of unique on-demand aggregated liquidity.

CODA Markets has most recently launched an intraday auction product that helps equip investors to prioritize liquidity over speed by enabling a single order to trade simultaneously with multiple counterparties.

Going by the name of CODA Fuse, the solution is embedded directly into a trader’s algorithmic routing logic, the goal of CODA Fuse auctions is to execute instantaneously, fluidly, and continuously throughout the trading day.

Bill Capuzzi, CEO of Apex Fintech Solutions, said: “Our acquisition of PDQ is fueled by the synergies that exist between us, and our aligned vision for the future of the industry. The pioneering work that PDQ has done to revolutionize equity market structure furthers the Apex mission to be the market leading financial technology and data provider driving disruption and innovation for the future of wealth creation. The equity markets are more fragmented than they’ve ever been, and that has caused inefficiencies for institutions and retail investors alike. Together with PDQ, we can meet these challenges head on and create a better marketplace.”

Don Ross, CEO of PDQ Enterprises, commented: “At PDQ and CODA, it’s always been our mission to continuously deliver smarter, more inclusive trading solutions. With the backing of the team and talent from Apex, that mission will be accelerated. In our discussions leading to this deal, our collective teams have identified numerous product and operating synergies that will enable us to deliver on our promise of fair and efficient markets, ensuring trading success for both institutional and retail investors. We are enthusiastic about the road ahead and thrilled to be part of the Apex team.”

FinanceFeeds webinar: Expert panel to discuss market data for multi-asset brokerages  

Apex used to be Robinhood’s clearinghouse

Apex is a fintech group that provides several solutions for the financial services industry through its many subsidiaries, including Apex Clearing Corporation, a custody and clearing platform; Apex Pro, a clearing partner to broker-dealers, ATS’s, routing firms, professional trading firms, hedge funds, institutions, and emerging managers; and Apex Crypto, which offers cryptocurrency trading and custody services.

Apex Crypto has been very much on demand within the digital asset space and among broker-dealers looking to add crypto to their offerings.

In October, Public.com partnered with Apex Crypto in order to allow users to invest in crypto assets in the same place where they manage their stock portfolio.

Cryptocurrency trading is offered by Apex Crypto LLC, which handles execution and custody services through a software licensing agreement between Apex Crypto LLC and Public Crypto LLC.

Apex has recently acquired Silver Management, which caters to brokerage firms and related service providers seeking to reduce operating expenses and enhance client experiences. The company delivers a range of regulatory cost basis processing solutions.

Apex said having Silver Solutions onboard will allow the firm to leverage its expertise in regulatory cost basis and tax reporting. Apex’s clients will also benefit from Silver’s cloud-based architecture.

Silver Solutions provides cryptocurrency brokers and exchanges with a tax solution to help their clients automate the filing process and prepare for ever-increasing regulatory scrutiny.

Apex, owned by financial technology firm Peak6, went public in February through a merger with Northern Star Investment Corp II in a deal that valued the combined entity at $5 billion.

It was the clearing house for no-commission stock app Robinhood until it launched its own clearing service. Apex was also reportedly bidding to provide PayPal with technology infrastructure to launch its stock-trading platform.

Read this next

Digital Assets

DappRadar report: NFTs volume below $1 billion for the first time since June 2021

DappRadar’s July 2022 industry report found that blockchain games and their NFTs remain resilient amid a crypto winter accentuated by the debacle of Terra.

Digital Assets

Blockchain.com registers to operate crypto business in Italy

Blockchain.com had registered as a digital asset provider in Italy, following in the tracks of rivals who joined a special registry with brokerage regulator Organismo degli Agenti e dei Mediatori (OAM).

Digital Assets

Binance rolls out crypto card in Argentina with 8% cashback

Binance is launching its crypto debit card in Argentina, the first country in Latin America to have the product thanks to a partnership with Mastercard.

Digital Assets

Greece sends BTC-e operator Alexander Vinnik to US

Alexander Vinnik, an alleged Russian hacker accused of laundering $4 billion of criminal proceeds through BTC-e, has been extradited from Greece to the United States.

Retail FX

Saxo Bank reports weakest FX volume in 6 months

As many traders were away on annual summer leave, currency markets saw a relatively quiet period in July. Within that context, Copenhagen-based Saxo Bank has reported its monthly metrics, which showed a renewed decline month-over-month.

Market News

The Week Ahead: 5 August from David Madden, Market Analyst at Equiti Group

It has been an interesting week and despite a lot of negative news, equity markets enjoyed a positive run. US House Speaker, Nancy Pelosi, defied the warnings from the Chinese government and carried out a visit to Taiwan. The Beijing authorities moved military hardware close to the self-governed island to flex its muscles. Stock markets came under a little pressure as a result and risk-off assets like the Japanese yen and gold found themselves in high demand.

Opinion

Alina Strogonova of Muvon Payments: How Can Fintech Optimise Payments

Financial services in their conventional form are obsolete, according to fintech startups. New-age finance is constantly redesigning electronic money transactions and testing innovative solutions.

Digital Assets

No need for CFDs: BitMEX introduces leveraged FX perpetual swaps

Previously retail FX trading was mostly possible via CFDs (contract for difference). BitMEX’s FX perps allow both retail users and institutional traders to access FX markets through an exchange-traded contract.

Digital Assets

BEQUANT launches index measuring dollar against crypto

“Our research team has worked hard to quantify and capture the latest economic story into the broader crypto market.”

<