ETC Global Group, on behalf of its subsidiary companies, ETC Global Holdings, Electronic Transaction Clearing, and Electronic Transaction Clearing Canada (collectively ETC); has entered into a new financing facility which will provide up to USD68 million in committed capital.
The Financing is being provided by certain affiliates of Cerberus Capital Management and Quantlab Investments. Proceeds from the Financing will allow ETC to immediately expand its United States and Canada broker dealer clearing operations and position the Company for further growth into new asset classes including options and FX, new product offerings including prime brokerage and stock loan, and other geographical regions, such as Europe.
“We at ETC are very excited to have Cerberus and Quantlab working along with us as we build upon and expand our capabilities in providing quality and efficient securities clearing services,” says said Harvey Cloyd (pictured), CEO of ETC Global Group. “Cerberus brings a wealth of resources, talent and relationships, as well as the financial wherewithal to help ETC realise and take advantage of the many clearing and prime brokerage opportunities we see in the market today. Quantlab, who has been a long-time supporter of the Company, brings knowledge and expertise in understanding the securities markets both domestically and abroad that will help ETC continually perfect its clearing processes.”
Lee Millstein, Senior Managing Director, Cerberus Capital Management, says: “Cerberus is pleased to help ETC reach this important milestone in its development and to support it in its next phase of growth. Cerberus’ agreement with ETC will provide the company with capital to scale the business immediately, as well as the strategic partnership, industry expertise, and relationships required to further expand its platform and geographic presence.”
Bruce Eames, Co-Founder Quantlab Financial, says: “We at Quantlab have believed in and supported the vision of ETC since its inception, and have been both a client and investor from early on. We look forward to increasing our clearing activity through ETC as it expands its scope.”
