What TNS’ Acquisition of R2G Means for Financial Markets

What TNS’ Acquisition of R2G Means for Financial Markets

March 4th, 2019 - Financial, Managed Hosting

By Tom Lazenga, Vice President of Sales for TNS Financial Services

If you think January is a month in which nothing exciting ever happens, think again – because a new announcement is shaking up the financial services industry: Transaction Network Services (TNS) has acquired Chicago-based data, connectivity and hosting specialist R2G Services. Sounds interesting – but what does this mean? Let’s look at each facet of this news.

The players: TNS has been a preferred supplier of networking and integrated data services to many leading financial organizations for more than two decades. The global financial markets rely on TNS’ robust, secure network for mission-critical connectivity to multiple diverse trading partners, including many of the world’s most prominent buy- and sell-side institutions, market data and software vendors, exchanges and alternative trading venues.

Founded in 2010, R2G has designed and built an industry-leading market data and managed hosting platform. The company offers solutions to a diverse financial services client base that includes proprietary trading groups, market makers, asset managers, hedge funds, investment banks, broker-dealers, CTAs, FCMs, and technology providers.

What each player brings to the table: The R2G team has built a reputation for excellent customer service and high-quality solutions, which utilize some of the lowest latency network routes between key financial data centers. TNS has more than 125 POPs worldwide and offers support for a full range of asset classes. TNS’ services are supported by 24x7x365 monitoring and help desks, and its financial community of interest has now grown to more than 2,100 endpoints.

What the acquisition means: In the last year, TNS strengthened its managed hosting services, and augmenting these with R2G’s network and solutions means the combined company now offers customers a broader choice of exchange co-location facilities and a more robust market data service. With R2G under its wing, TNS is now a full-service managed infrastructure provider that can meet the demanding needs of global financial market participants, including those in London, Tokyo, Hong Kong and Singapore, through a single supplier relationship.

Why that’s important: Combining the TNS and R2G solutions creates a compelling one-stop-shop service offering that comprises:

  • Broad and deep products across the infrastructure stack
  • Low latency
  • Deep financial industry expertise
  • Global reach, locations and access
  • High-touch service and strong customer support
  • A unified product portfolio

The company intends to focus on three Cs to boost its customers’ businesses:

  • Colocation: Expansion of managed hosting and intra-data center services
  • Connectivity: Expansion of network offering, both geographically and in new service types
  • Content: Develop content services leveraging existing colocation, network and market data

The acquisition shows TNS is committed to bring new services online in the financial industry space, acquiring accomplished firms that fit its strategy. TNS now operates a Chicago office, and the R2G team will continue to be based there – giving TNS boots on the ground in the same hub of agricultural and financial commodities trading in which CME and Cboe headquarter their operations. Stay tuned for more info as this news evolves by following TNS Financial Services on FacebookTwitter and LinkedIn. You can reach Tom Lazenga at tlazenga@tnsi.com

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