London-based interdealer broker Tullett Prebon established a municipal bond presence in North America on Friday when it acquired New York-based municipal bond interdealer broker Chapdelaine & Co.
As part of the deal, August J Hoerrner, Chapdelaine’s current president, will join Tullett Prebon to manage the new business. He will report to John Abularrage, chief executive officer and president of Tullett Prebon Americas.
The firms would not disclose any other terms or conditions of the acquisition.
“We are delighted to have acquired such an established and respected player in the North American municipal bond market,” Abularrage said in a statement. “Importantly, this acquisition reinforces our continued commitment to growing our business in the Americas.”
Chapdelaine, also known as Chappy, brings to Tullett Prebon 66 brokers and more than 45 years in the business providing dealer-to-dealer execution services. Chapdelaine covers dealers and dealer banks in states in the Southeast, Southwest and Midwest regions, as well as in California, Ohio and Chicago. The firm has also built businesses in investment-grade corporate bonds and in U.S. Treasuries.
Chapdelaine breaks down its trading activity into several groups. It has a short desk that focuses on debt maturing up to seven years from issuance, a national desk that focuses on securities maturing within eight and 17 years, and a dollar bond desk responsible for securities maturing within 18 and 40 years.
Chapdelaine also staffs regional desks along with taxable and zero-coupon trading desks.
The firms would not say if the acquisition would affect the Chapdelaine desk-coverage structure.
Tullett Prebon describes itself as one of the world’s largest inter-dealer brokers. The firm operates as an intermediary in wholesale financial markets. It facilitates the trading activities of its clients, which include commercial and investment banks.
Tullett Prebon’s business covers seven major product groups: rates, volatility, Treasury, non-banking, energy and commodities, credit, and equities.