Tidal Buys ZEGA's Trading Business With Eye on Options

Tidal Financial Group integrates ZEGA Financial's trading operations as derivatives-based investment products gain traction among retail investors.

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DJ
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Finance Reporter
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Reviewed by: Paul Curcio
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Edited by: Ron Day

Tidal Financial Group, which has helped clients create and launch dozens of ETFs, has acquired ZEGA Financial’s trading business in a move that it said doubles its trading operations.

The deal combines Tidal’s ETF platform, which manages over 100 funds, with ZEGA’s derivatives trading expertise, according to a statement issued Monday by Milwaukee-based Tidal Financial. Financial terms of the transaction weren't disclosed in the announcement, which also didn't disclose the number of Palm Beach, Florida-based Zega's employees coming over to Tidal.

Tidal is boosting its trading operations with the deal as more firms are focusing on increasingly complex investment strategies using options and derivatives. Tidal is aiming to be more competitive as firms are increasingly offering complex trading strategies to retail investors through exchange-traded products.

Tidal, which serves as advisor and sub-advisor to funds including the recently launched Fundstrat Granny Shots US Large Cap ETF (GRNY), will integrate ZEGA’s trading team into its operations, with ZEGA’s co-founder Jay Pestrichelli joining as chief trading officer, the release said.

Pestrichelli, who previously led TD Ameritrade’s online brokerage division, will continue to lead the management of YieldMax ETF strategies according to a YieldMax announcement. Tidal serves as advisor to YieldMax, which manages $4.28 billion in 29 ETFs. He'll also serve as chief trading officer for the combined teams, 

Scott Snyder joins Tidal’s trading team to support the firm's derivatives-based ETF structure, the company said.

Expanding ETF Capabilities

Tidal’s ETF platform serves as advisor or sub-advisor to over 100 funds with varying strategies, from broad market exposure to targeted thematic approaches, according to the firm’s website. 

Tidal’s platform includes advisory relationships with funds like the $1.3 billion Defiance Daily Target 2x Long MSTR ETF (MSTX) and several thematic funds from Amplify ETFs, including the $1 billion Amplify Junior Silver Miners ETF (SILJ).

The deal also aims strengthens Tidal’s derivatives capabilities as the firm expands its YieldMax suite of options-based ETFs, which has grown to include over 30 funds focused on single-stock and thematic strategies, according to the YieldMax release.

A graduate of The University of Texas, Arlington with a BA in Communications, DJ has covered retirement plans, mortgage news, and financial advisor trends. His background includes producing daily content, managing newsletters, and engaging with industry experts. DJ is excited to contribute to ETF coverage and learn more about the $10-trillion-dollar ETF industry. Outside of work, he enjoys exploring New York City's food scene, anime, and video games.