Market Maker Adopts Torstone Platform & Other News

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In other news, SS&C breaks into the energy market, State Street, Credit Suisse & Paxos test T+0 settlement, and a private equity firm buys GoldenSource.

Torstone to Provide Post-Trade Ops to Tower Research Capital

Market maker Tower Research Capital reports that it will be using the post-trade services of vendor Torstone Technology to grow and diversify its traded asset classes, officials say.

“As we continue to diversify into new asset classes and trading strategies, at ever-increasing volumes, we need a flexible scalable solution,” says Alan McGroarty, chief operating officer (COO) at Tower Research Capital, in a prepared statement.

The Torstone platform is “a multi-entity, multi-asset,” cloud-based, software as a service (SaaS) solution to help Tower Research Capital’s global entities manage trade capture, accounting, reconciliations, and corporate actions requirements, officials say.

“We are looking forward to partnering with Tower and are committed to providing them with a global solution,” says Brian Collings, CEO of Torstone Technology, in a statement.

Based in New York City, Tower Research Capital, founded in 1998, is a proprietary trading and technology firm that deploys automated quantitative strategies with connectivity in 100+ venues, officials say. The firm has 17 offices globally and approximately 1,000 employees.

SS&C Acquires MineralWare for $18 Million

SS&C Technologies has stepped into the energy market arena with the $18 million acquisition of a software solutions vendor, described as 5 M’s Minerals Management, a Texas limited liability company doing business as MineralWare, officials say.

The MineralWare cloud-based platform tracks land and revenue management via a single platform, and helps firms manage minerals, royalties, and non-operated working interests, officials say. The vendor also offers customized relationship management (CRM) systems.

The Fort Worth, Texas-based MineralWare “serves financial institutions, universities and foundations, high-net-worth individuals and family offices, mineral and royalty acquisition companies in the U.S.,” officials say.

“MineralWare will operate within the SS&C Innovest businesses reporting to Glenn Schmidt, general manager, SS&C Innovest. The deal will add 350 institutional and high-net-worth clients and $5.5 million in annual recurring revenue to the existing SS&C platform, with a combined portfolio of 750,000 mineral assets,” officials add.

“Integrating our unique asset accounting functionality and managed services offering with MineralWare’s modern user interface, advanced analytics, and reporting will provide clients with a best-in-class solution,” Schmidt says in a statement.

State Street, Credit Suisse & Paxos Complete T+0 Settlement Pilot

Custodian bank State Street and Paxos, a regulated blockchain infrastructure platform provider, have been working on a pilot project that integrates “State Street’s custodial services into the Paxos Settlement Service,” officials report.

“As part of the pilot, State Street was able to simulate the settlement and custody of shares on the Paxos platform and asset movements with Credit Suisse more efficiently,” officials say.

The Paxos Settlement Service is a clearing platform intended “to address the structural problems of opaque margin, slow settlement and high costs impacting today’s market participants,” officials say.

“The private, permissioned blockchain solution is designed to allow two parties to safely settle securities trades through a modern clearing agency. By leveraging Paxos Settlement Service for institutional settlement, State Street was able to send settlement instructions to Paxos for cost-effective settlement while still delivering the required messaging to interface with existing settlement systems,” officials say.

State Street’s Digital and Alpha divisions in conjunction with Credit Suisse “delivered the workflow and system adjustments to test the functionality of seamless same day (T+0) settlement,” officials say. “Paxos can deliver T+0 settlement today while the legacy infrastructure has a goal of achieving T+1 settlement in 2024.”

The pilot “further validates that the use of blockchain technology will help automate the life cycle of a trade, reduce costs, and could eliminate the need for the traditional reconciliation processes used in today’s settlement environment,” says Nadine Chakar, head of State Street Digital, in a prepared statement.

“This collaboration marks continued progress in digital market infrastructure, ultimately benefiting the broader market,” says Chris Rice, head of Digital Asset Markets at Credit Suisse, in a statement.

Gemspring Capital Now Owns GoldenSource

An affiliate of middle-market private equity firm Gemspring Capital has acquiredGoldenSource, an enterprise data management (EDM) solutions vendor, in an effort to propel “GoldenSource’s significant plans for future product innovation and accelerate growth globally,” officials say.

“Gemspring intends to build upon GoldenSource’s product leadership to address market needs, both organically through increased R&D as well as through strategic acquisitions,” officials say. In addition to its EDM wares, GoldenSource offers Master Data Management (MDM) solutions to financial services firms.

“Given increased regulatory reporting requirements and the proliferation and expanding cost of new data sources, we see increased demand for GoldenSource’s offerings going forward,” says Aron Grossman, managing director at Gemspring, in a prepared statement.

GoldenSource solutions help firms “manage a wide variety of mission-critical data, including securities, prices, customers, entities, ESG, and other data types. GoldenSource also provides related services and hosting through its cloud platform to enable ease of implementation and seamless ongoing usage,” officials say. The vendor’s customer list includes investment banks, asset managers, and capital markets services firms.

Gemspring Capital, a Westport, Conn.-based private equity firm has $1.5 billion of capital under management, and offers capital solutions to lower middle-market companies, officials say. D.A. Davidson & Co. reports that it served as “the exclusive financial and strategic advisor to GoldenSource,” and that GoldenSource “was backed by The Invus Group, evergreen equity investors with over $10 billion under management.” Financial terms were not disclosed.