Tradeweb Markets Inc. has successfully completed its acquisition of r8fin, a leading technology provider specializing in algorithmic-based execution for U.S. Treasuries and interest rate futures. The acquisition, initially announced in November 2023, has now been finalized, marking a strategic step forward for Tradeweb.
The integration of r8fin’s intelligent execution capabilities into Tradeweb’s electronic trading platform for U.S. Treasuries is going to provide clients with a more comprehensive approach to trading U.S. Treasury bonds and related futures. Tradeweb CEO Billy Hult expressed optimism about the acquisition, stating, “We are developing an integrated approach to accessing the U.S. Treasury market through multiple liquidity pools across cash and futures – and r8fin is an important part of that approach.”
Tradeweb Finalizes r8fin Acquisition, Elevates U.S. Treasury Trading
Hult highlighted the significance of the acquisition for Tradeweb’s overarching strategy, emphasizing its potential to unlock new possibilities for relative value hedge funds and other clients. He also welcomed r8fin co-founder Assad Fehmy to Tradeweb, recognizing the valuable expertise and innovation that Fehmy brings to the team.
The acquisition is anticipated to have a positive impact on Tradeweb’s financial performance, with expectations of modestly enhancing revenue growth and operating margins. Tradeweb foresees the acquisition as accretive to earnings per share in 2024.
r8fin, known for its suite of algorithmic-based tools and a thin-client execution management system (EMS) trading application, serves a diverse client base that includes relative value hedge funds, systematic hedge funds, professional trading firms, and primary dealers. In 2023, r8fin facilitated algorithmic-based execution for an average of over $24 billion notional in U.S. Treasuries and 375,000 futures contracts per day.
Tradeweb itself holds a prominent position as the leading electronic trading platform for U.S. Treasuries, boasting a broad and deep network spanning institutional, wholesale, and retail markets. Having launched the first multi-dealer online marketplace for U.S. Treasuries 25 years ago, Tradeweb facilitated an average of $146 billion per day in U.S. Treasury trading in 2023.
The completion of this acquisition reinforces Tradeweb’s commitment to innovation and expanding its capabilities in electronic trading, further solidifying its standing as a key player in the markets.
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