Tradeweb Markets has entered into a definitive agreement to acquire algorithmic technology provider r8fin in the first quarter of 2024, subject to closing conditions.
The Chicago-based technology firm provides a suite of algorithmic-based tools, as well as a thin-client execution management system (EMS) trading application to facilitate futures and cash trades.
Tradeweb says the acquisition will “modestly enhance revenue growth, operating margins” and be accretive to 2024 earnings per share.
r8fin technology facilitates algorithmic-based execution for an average of more than US$23 billion notional in US Treasury bonds and 350,000 futures contracts per day.
The firm’s solutions are to complement Tradeweb’s existing Dealerweb Active Streams, Dealerweb Central Limit Order Book (CLOB) and Request-for-Quote (RFQ) offerings, creating a “broad-based approach” to trading US Treasuries and futures trading.
Commenting on the acquisition, Tradeweb CEO Billy Hult says: “r8fin technology will help Tradeweb reach a new and differentiated level of intelligent execution through a 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 US Treasury market through multiple liquidity pools across cash and futures.”
Hult adds: “As we look ahead, we believe pairing r8fin’s technology with our global network will open up a range of new possibilities for clients engaged in relative value or macro trades spanning multiple asset classes.”
r8fin co-founder Assad Fehmy comments: “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.”
Fehmy will join Tradeweb upon the closing of this acquisition.
