NEW YORK - Tradeweb Markets (NASDAQ:TW) Inc. is set to expand its technological capabilities with the acquisition of r8fin, a Chicago-based specialist in algorithmic execution technology for U.S. Treasuries and interest rate futures. The deal, announced today, is expected to close in the first quarter of 2024 and is aimed at bolstering Tradeweb's already significant presence in the U.S. Treasury market.
The incorporation of r8fin's technology, which has been operational since 2016 and handles over $23 billion notional in U.S. Treasury bonds and 350,000 futures contracts daily, will enhance Tradeweb's suite of offerings. These include Dealerweb Active Streams, Dealerweb Central Limit Order Book, Tradeweb Request-for-Quote, and Tradeweb AiEX. With a current daily U.S. Treasury trading volume of $142.7 billion, Tradeweb is looking to further its intelligent execution capabilities through the integration of sophisticated algorithmic technology and cross-market connectivity.
CEO Billy Hult expressed confidence that r8fin's technology would provide an edge for Tradeweb in serving systematic hedge funds, primary dealers, and professional trading firms. Assad Fehmy, co-founder of r8fin, will join Tradeweb following the completion of the acquisition.
This move follows Tradeweb's strategic pattern of growth through acquisitions, including the recent purchase of Yieldbroker for A$125 million. That acquisition has granted Tradeweb clients access to the Asia-Pacific debt market and is part of a broader inorganic growth strategy that has seen the company actively expand its global reach and technological infrastructure.
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