SunGard dumping Assent/Andover prop trading business?

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RichSohn

I heard a rumor that Sungard (the company that bought out Andover trading) have plans to eliminate their prop and retail trading businesses. Seems logical since their primary reason to buy Andover was to get ownership of the Hammer trading system. They're a tech/software co, not a financial co.
 
Quote from RichSohn:

I heard a rumor that Sungard (the company that bought out Andover trading) have plans to eliminate their prop and retail trading businesses. Seems logical since their primary reason to buy Andover was to get ownership of the Hammer trading system. They're a tech/software co, not a financial co.
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Where did you hear this rumor from? Supposedly they make money from the business and that side of the business still does a lot of volume for the firm so I would be surprised but anything can happen.
 
"SunGard Buys Reech Capital

posted on Monday 2 Jun 2003 01:02 PDT

From eFinancial News (subscription required)

eFinancialNews reports in a move to gain ground in the hedge fund market, US-based SunGard is buying Reech Capital, a risk management specialist. SunGard’s products mainly target large investment banks and funds, while Reech’s products focus on hedge fund and funds of funds. Under terms of the deal Reech will become an operating unit of SunGard headed by Christopher Reech, its founder."



I'm sure they are committed to Assent.
 
Reech is a financial technology services and solutions company. Like Andover's Hammer, Reech's risk management ASP products and services were the primary focus of the acquisition. Reech is NOT a financial institution. I don't see how this has anything to do with being "committed to Assent".

Quote from trader99:

"SunGard Buys Reech Capital

posted on Monday 2 Jun 2003 01:02 PDT

From eFinancial News (subscription required)

eFinancialNews reports in a move to gain ground in the hedge fund market, US-based SunGard is buying Reech Capital, a risk management specialist. SunGard’s products mainly target large investment banks and funds, while Reech’s products focus on hedge fund and funds of funds. Under terms of the deal Reech will become an operating unit of SunGard headed by Christopher Reech, its founder."



I'm sure they are committed to Assent.
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Assent is VERY profitable for Sungard. There would be NO reason to get rid of it. I would like to know what your source is for such a rumor???
 
Sungard per say isn't getting rid of Andover/Assent. But they are also not backing ANdover/Assent either. Andover/Assent has now become just another broker/dealer using Sungard services. Sungard kept the volume, but not the risk.
 
As with any rumor, I heard second hand from Andover/Assent traders who got the information from their branch manager. Supposedly, increased trade volume has become the immediate goal for them...since increased volume would make the clearing arm look very attractive as a buyout target. To me, it's too bad that the trading branches and the clearing firms go hand in hand....without the trading, Assent clearing will crumble since they do very little, if any business, outside of Andover/Assent trading.

Just passing stuff from the rumor mill...


Quote from sdtrader:

Assent is VERY profitable for Sungard. There would be NO reason to get rid of it. I would like to know what your source is for such a rumor???
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Well, the obvious reason to get rid of it is the unnecessary risk and the incompatibility of a daytrading operation in Sungard's technology services business model. They took over Andover for Hammer, clear and simple. They have absolutely no reason to take on brokerage and trading directly.

Quote from sdtrader:

Assent is VERY profitable for Sungard. There would be NO reason to get rid of it. I would like to know what your source is for such a rumor???
More...
 
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