Tradeweb Markets Inc. (NASDAQ:TW), a global operator of electronic marketplaces for rates, credit, equities and money markets today announced it has completed its acquisition of r8fin, a technology provider that specializes in algorithmic-based execution for U.S. Treasuries and interest rate futures. The transaction was announced in November 2023.
Integrating r8fin’s intelligent execution capabilities into Tradeweb’s electronic trading platform for U.S. Treasuries will help clients take a broad-based approach to trading U.S. Treasury bonds and related futures.
Tradeweb CEO Billy Hult commented:
“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. This acquisition is very much in Tradeweb’s wheelhouse, and we believe it represents a meaningful step forward in how electronic trading can unlock new possibilities for relative value hedge funds and other clients. We are also pleased to welcome r8fin co-founder Assad Fehmy to Tradeweb.”
Tradeweb expects the acquisition to modestly enhance revenue growth, operating margins and be accretive to 2024 earnings per share.
r8fin 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. r8fin has a client base that includes relative value hedge funds, systematic hedge funds, professional trading firms and primary dealers. r8fin technology facilitates algorithmic-based execution for an average of more than $24 billion notional in U.S. Treasuries and 375,000 futures contracts per day in 2023.
Tradeweb is the leading electronic trading platform for U.S. Treasuries, with a broad and deep network that spans institutional, wholesale and retail markets. Tradeweb launched the first multi-dealer online marketplace for U.S. Treasuries 25 years ago, and in 2023 facilitated an average of $146 billion per day in U.S. Treasury trading.
