Tradeweb agrees to acquire r8fin to add algorithmic tools for US Treasuries

r8fin’s existing client base includes 65 relative value hedge funds, systematic hedge funds, professional trading firms, and primary dealers. Its technology is a pivotal tool in the market, facilitating algorithmic-based execution for an impressive daily average of over $23 billion notional in U.S. Treasury bonds and 350,000 futures contracts.

Tradeweb has announced a definitive agreement to acquire r8fin. This acquisition positions Tradeweb to significantly bolster its capabilities in algorithmic-based execution, particularly in U.S. Treasuries and interest rate futures.

Founded in 2016 and based in Chicago, r8fin has carved a niche in the market with its suite of algorithmic tools and a thin-client execution management system (EMS) trading application.

r8fin’s algo tools and EMS designed for futures and cash trades

These tools are tailored to enhance futures and cash trades, complementing Tradeweb’s existing array of trading platforms and services, such as Dealerweb Active Streams, Dealerweb Central Limit Order Book (CLOB), Tradeweb Request-for-Quote (RFQ), and Tradeweb AiEX (Automated Intelligent Execution).

The expected completion of this acquisition in the first quarter of 2024, subject to regulatory approvals and customary closing conditions, is anticipated to modestly boost Tradeweb’s revenue growth and operating margins, and be accretive to its 2024 earnings per share.

Billy Hult, CEO of Tradeweb, emphasized the transformative potential of this acquisition: “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.” He underlined that this move aligns with Tradeweb’s vision to offer an integrated product suite for the U.S. Treasury market, extending across multiple liquidity pools in cash and futures.

New possibilities for clients engaged in relative value or macro trades spanning multiple asset classes

Hult further elaborated on the future prospects of this acquisition: “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’s existing client base includes 65 relative value hedge funds, systematic hedge funds, professional trading firms, and primary dealers. Its technology is a pivotal tool in the market, facilitating algorithmic-based execution for an impressive daily average of over $23 billion notional in U.S. Treasury bonds and 350,000 futures contracts.

Tradeweb Markets, a leader in electronic trading platforms, has been at the forefront of U.S. Treasury trading for 25 years, facilitating an average of $142.7 billion per day in U.S. Treasury trading. This acquisition further cements its position as a market leader. r8fin, on the other hand, has established itself as a vital technology provider in fixed income trading.

Assad Fehmy, Co-founder of r8fin, said: “Combining with Tradeweb will further amplify and scale the r8fin technology, providing customers with broader integrated execution solutions and asset classes.”

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