Tradeweb Markets has completed the technology integration of Nasdaq’s US fixed income electronic trading platform, formerly known as eSpeed, which it acquired two years ago in a $190 million, all-cash transaction.
Upon completion of the integration, Nasdaq’s central limit order book (CLOB) for electronic trading in on-the-run (OTR) US treasuries will serve Tradeweb’s wholesale clients via Dealerweb.
The New York-based company said it has achieved “the final significant technology milestone” relating to the company’s 2021 takeover of the Nasdaq Fixed Income platform into its Dealerweb central limit order book (CLOB). As such, Dealerweb clients will gain flexibility in how they trade OTR US treasuries through the integration, with the option to use either the CLOB or direct streams protocol, with both entities leveraging the same API.
“This move optimizes performance for market participants by placing Dealerweb U.S. Treasury (UST) trading and price discovery in closer proximity to trading customers and vendors with an existing presence in Equinix NY5,” said Tradeweb President Thomas Pluta. “Dealerweb is committed to offering the best possible trading experience for our clients, and by realizing operational synergies we can continue to provide reliable and leading-edge trading services to our clients.”
“Dealerweb’s infrastructure and data center move to the Equinix campus in Secaucus demonstrates its commitment to providing a best-in-class service to UST trading participants,” adds Troy Kane, Global Head of Derivatives and FICC Development at Citadel Securities. “The equalized connections and the strategic location provide close proximity to important network paths from Chicago to Secaucus. Citadel Securities is supportive of the move and what it will mean for Dealerweb’s position in the market.”
Tradeweb expects the move to increase the number of participants connected to the Dealerweb platform. The latter is now offering US treasury trading through direct 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.
The company also said the transaction adds value to the wholesale US Treasuries market, one of the world’s largest and most liquid cash markets. Specifically, the combined platform provides greater choice among protocols, more connected participants and lower cost.
