Tradeweb Completes Acquisition of Nasdaq Fixed Income E-trading Platform

Tradeweb Markets Inc. (formerly known as eSpeed), a leading global operator of electronic marketplaces, announced that it has completed its acquisition of Nasdaq's U.S. fixed income electronic trading platform, which was firstly known to the public on February 2, 2021. 

The fully executable central limit order book (CLOB) for on-the-run U.S. Treasuries is now part of Tradeweb's Dealerweb unit serving the wholesale U.S. Treasury market. 

The acquisition posted a price of $190 million, and was funded using cash on hand. Tradeweb expects the acquisition will reach its corporate EBITDA margins exiting year one of a two-year integration period.

Commenting on the acquisition, Tradeweb CEO Lee Olesky said: "This acquisition reflects Tradeweb's commitment to expanding our offering with platforms that deliver the choice and flexibility our clients demand. Looking ahead, we will continue to evaluate targeted investment opportunities that enable us to meet the needs of our clients, foster innovation and drive further value creation for our shareholders."

After adding the new CLOB,  Dealerweb customers now have the flexibility to trade on-the-run U.S. Treasuries using either the CLOB or Dealerweb's directed streams protocol. Both protocols will be operated on the same architecture once the integration is complete, leveraging the same API and offering a more flexible, efficient approach to trading in the wholesale U.S. Treasury market.

Tradeweb President Billy Hult added: "The U.S. Treasury market is where the world comes to invest and hedge each day, so Tradeweb's comprehensive offering will also provide a real benefit for clients trading credit, ETFs, mortgages and other asset classes. In addition, and with this acquisition now finalized, we can continue to focus on expanding the number of wholesale U.S. Treasury market participants on our platform and driving further growth on Dealerweb."

With the closing of the transaction, Tradeweb now facilitates trading in U.S. Treasuries through directed streams, CLOB, request-for-quote (RFQ), sessions-based trading, automated trading, list trading and click-to-trade to clients in the institutional, wholesale and retail sectors. 

In this April, Tradeweb​ teamed up with Amazon Web Services to enhance data access.