Tradeweb Completes Acquisition of US Fixed Income Electronic Trading Platform from Nasdaq
NEW YORK–(COMMERCIAL THREAD) – Tradeweb Markets Inc. (NASDAQ: TW), a leading global operator of electronic marketplaces for rates, credit, equities and money markets, today announced that it has completed the previously acquired acquisition announced from Nasdaq’s US electronic fixed income trading platform. Formerly known as eSpeed, the fully executable centralized limit order book (CLOB) for outstanding US Treasury bills is now part of Tradeweb’s Dealerweb unit serving the US Treasury wholesale market. The acquisition was first announced on February 2, 2021.
The total purchase price was $ 190 million and was funded with cash on hand. The acquisition is immediately accretive to adjusted profit. Tradeweb expects the acquisition to reach its corporate EBITDA margins at the end of the first year of a two-year integration period.
Tradeweb CEO Lee Olesky commented, âThis acquisition reflects Tradeweb’s commitment to expand our offering with platforms that provide the choice and flexibility our customers demand. Going forward, we will continue to assess targeted investment opportunities that allow us to meet the needs of our clients, foster innovation and generate further value creation for our shareholders. ”
The addition of this fully electronic CLOB gives Dealerweb clients the ability to trade US Treasuries on the fly using either the CLOB or Dealerweb’s Directed Flow protocol. Both protocols will operate on the same architecture after the integration is complete, taking advantage of the same API and providing a more flexible and efficient approach to trading in the US Treasury wholesale market.
Tradeweb Chairman Billy Hult added, âThe US Treasury market is where the world comes to invest and hedge every day. Tradeweb’s comprehensive offering will therefore also offer a real advantage to clients who trade in credits, ETFs, mortgages and other asset classes. Additionally, and with this acquisition now complete, we can continue to focus on increasing the number of US Treasury wholesale market participants on our platform and continuing to grow on Dealerweb. ”
With the trade closing, Tradeweb now makes it easier to trade US Treasuries through Directed Feeds, CLOB, Request for Quote (RFQ), Session Based Trading, Automated Trading, List Trading and Click-to- trade to clients in the institutional sector. , wholesale and retail sectors. In the first quarter of 2021, Tradeweb facilitated trading for an average of $ 115 billion notional per day in US Treasuries.
Centerview Partners LLC acted as financial advisor to Tradeweb and Fried, Frank, Harris, Shriver & Jacobson LLP acted as legal advisor.
About Tradeweb Markets
Tradeweb Markets Inc. (Nasdaq: TW) is a leading global operator of electronic markets for rates, credit, equities and money markets. Founded in 1996, Tradeweb provides access to markets, data and analysis, e-commerce, straight-through processing and reporting for more than 40 products to clients in institutional, wholesale and retail markets. The advanced technologies developed by Tradeweb improve price discovery, order execution and workflows while enabling greater scale and helping to reduce risk in clients’ trading operations. Tradeweb serves approximately 2,500 clients in over 65 countries. On average, Tradeweb has facilitated over $ 870 billion in notional value traded per day over the past four quarters. For more information, visit www.tradeweb.com.
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