Tradeweb Markets Inc. has announced a definitive agreement to acquire r8fin, a Chicago-based technology provider specializing in algorithmic-based execution for U.S. Treasuries and interest rate futures.
Established in 2016, r8fin has developed a suite of algorithmic-based tools and a thin-client Execution Management System (EMS) trading application designed to facilitate futures and cash trades. The addition of r8fin’s solutions will complement Tradeweb’s existing portfolio, which includes Dealerweb Active Streams, Dealerweb Central Limit Order Book (CLOB), Tradeweb Request-for-Quote (RFQ), and Tradeweb AiEX (Automated Intelligent Execution), creating a comprehensive and versatile approach to trading U.S. Treasuries and related futures.
Tradeweb anticipates that the acquisition will modestly enhance revenue growth operating margins and be accretive to earnings per share in 2024. The transaction is going to close in the first quarter of 2024, subject to customary closing conditions and regulatory approvals.
Tradeweb Acquires r8fin to Boost Algorithmic Trading.
Tradeweb CEO Billy Hult expressed enthusiasm about the strategic move, stating, “r8fin technology will help Tradeweb reach a new and differentiated level of intelligent execution through a powerful combination of algorithmic technology and cross-market connectivity. This marks another step forward in the execution of our vision to deliver an integrated product suite for accessing the U.S. Treasury market through multiple liquidity pools across cash and futures.”
Hult further emphasized the potential for the partnership to unlock new possibilities for clients engaged in relative value or macro trades spanning multiple asset classes.
r8fin, with a clientele comprising 65 relative value hedge funds, systematic hedge funds, professional trading firms, and primary dealers, facilitates algorithmic-based execution for an average of more than $23 billion notional in U.S. Treasury bonds and 350,000 futures contracts per day.
Assad Fehmy, Co-founder of r8fin, expressed confidence in the acquisition, stating, “Combining with Tradeweb will further amplify and scale the r8fin technology, providing customers with broader integrated execution solutions and asset classes. It has been an incredible experience watching our technology and network evolve over the last seven years, and I am confident r8fin will be positioned for continued growth in this new chapter as part of Tradeweb.” Mr. Fehmy is going to join Tradeweb upon the completion of the acquisition.
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