Tradeweb Markets Inc., a leading, global operator of electronic marketplaces for rates, credit, equities and money markets, announced that it has entered into a definitive agreement to acquire r8fin, a technology provider that specializes in algorithmic-based execution for U.S. Treasuries and interest rate futures.

Founded in 2016 in Chicago, 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. The solutions complement Tradeweb’s existing Dealerweb Active Streams, Dealerweb Central Limit Order Book (CLOB), Tradeweb Request-for-Quote (RFQ) and Tradeweb AiEX (Automated Intelligent Execution) offerings, creating a valuable and broad-based approach to trading U.S. Treasuries and related futures trading.

Tradeweb expects the acquisition to modestly enhance revenue growth, operating margins and be accretive to 2024 earnings per share. The acquisition is expected to close in the first quarter of 2024 subject to customary closing conditions and receipt of regulatory approvals.

Tradeweb CEO Billy Hult commented: “r8fin technology will help Tradeweb reach a new and differentiated level of intelligent execution through a powerful 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 U.S. Treasury market through multiple liquidity pools across cash and futures. Beyond that, as we look ahead, we believe pairing r8fin’s sophisticated 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 has a client base that includes 65 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 $23 billion notional in U.S. Treasury bonds and 350,000 futures contracts per day.[1]

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 today facilitates an average of $142.7 billion per day in U.S. Treasury trading.[2]

r8fin Co-founder Assad Fehmy commented: “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.”

Mr. Fehmy will join Tradeweb upon the closing of this acquisition.

Source: Tradeweb