Hertshten Group, which owns prop trading firm Futures First and clearer G.H. Financials, has signed an agreement to acquire London-based prop trader OSTC Markets.

Hertshten Group, owned by former Chicago floor trader Gedon Hertshten, said on Wednesday it “has signed an asset acquisition agreement” to acquire the trading business of OSTC Limited with a view to merging Futures First and OSTC. The financial terms of the deal were not disclosed.

Elad Hertshten, head of Markets at Hertshten Group, said “We are very excited to be adding highly knowledgeable market professionals to our Group. Further diversifying our trading strategies and markets, we aim to further solidify Hertshten Group’s position as a leader in market liquidity across global derivative exchanges”.

The group, which also owns trading firm Mercury Derivatives, said the OSTC acquisition will further strengthen Hertshten Group’s “position as the world’s preeminent proprietary trading firm in the exchange listed derivative space”.

Mark Slade, chief executive of OSTC Ltd, said "This is a natural strategic deal that makes perfect logical sense for both parties. We have long admired Hertshten Group as leaders in our industry and we are excited by the massive additional opportunities this agreement brings to our people.”

The firms said in a statement posted on LinkedIn that the OSTC Markets business will continue to be led by Michael Shirley who will report to Elad Hertshten, who is also the managing director of Futures First.

The deal could be a boost for G.H. Financials which currently clears Futures First and would be the obvious recipient of the additional flow coming from the enlarged Hertshten prop trading business.

G.H. Financials said in April its chief executive Sharon Shi is leaving the firm at the end of May after 18 months running the London-based clearing broker, as first reported by FOW.

A spokesman for G.H. Financials said the firm’s new chairman Jerome Kemp will fill in as acting CEO until a new leader is appointed.

Kemp, the former head of futures at J.P. Morgan and Citigroup, became chairman of G.H. Financials on March 31.

OSTC restructured in late 2022 its business by establishing its trading and training divisions as two separate entities.