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BeeksFX takes over US rival Gallant in $1m deal

A Scottish firm that has developed computerised systems it says can help foreign exchange traders cut vital milliseconds off the time it takes them to execute orders has bought a US rival for around $1m (£590,000).

Glasgow-based BeeksFX VPS said the acquisition of New York's Gallant VPS will consolidate its position as one of the leading players in a fast-growing niche market.

The takeover will give BeeksFX a base close to the heart of the US financial system and allow it to add thousands of names to its customer list of traders and brokers.

The company expects the acquisition of Gallant will allow it to maintain the rapid rate of growth which has seen it achieve turnover of £2m in just three years.

Founder Gordon McArthur said BeeksFX has developed a tool that can help private foreign exchange investors overcome one of the biggest challenges they face operating in a market dominated by giant trading houses.

Thousands of people around the world have started trading on global markets using algorithms that trigger orders automatically.

However, Mr McArthur said his own experience as a trader had taught him that people who place orders on the web can find the price of an asset changes in the split second between them placing an order and it being executed.

"From London to New York it takes 80 milliseconds but the price can change in that time," said Mr McArthur, who worked at IBM for 11 years.

BeeksFX allows clients to hire access to Virtual Private Servers which are housed in London and New York, which it says can cut the time to complete trades to half a millisecond.

The company said the servers it provides, which can be accessed from £25 a month, are housed in secure sites and can be used to trade 24 hours a day.

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