MarketAxess Holdings, the operator of a leading electronic trading platform for fixed-income securities, will acquire LiquidityEdge, a leading provider of an electronic US Treasuries marketplace.
The deal to buy the startup founded in 2015 is estimated to be worth about $150m. Of that money, $100m is in cash and $50m in stock, according to MarketAxess. Both companies are headquartered in New York.
LiquidityEdge is the developer of a bespoke trading ecosystem to connect a community of dealers, market-makers and institutional investors to trade in the US Treasury market.
Chris Concannon, president and COO of MarketAxess, commented, “Through the acquisition of LiquidityEdge, we are bringing rates trading capabilities to MarketAxess to complement our leading position of electronic trading in the global credit markets. This will not only enhance the trading experience for our dealer and institutional investor clients, but also offer a truly innovative solution for dealers to stream US Treasury quotes to a tailored audience.”
Nichola Hunter, CEO of LiquidityEdge, added, “Across a few short years, LiquidityEdge has grown to become one of the leading marketplaces to trade US Treasuries. Offering an alternative to incumbent trading protocols, LiquidityEdge continues to record daily highs in excess of $25bn. That tremendous growth is made possible by our cutting-edge approach to liquidity management and superior technology solutions, something also shared by MarketAxess. MarketAxess has been a true pioneer in driving the evolution of the fixed income markets, and we’re thrilled that LiquidityEdge will add to that story.”
Copyright © 2019 FinTech Global
