TT bolsters fixed income franchise with AxeTrading takeover

Chicago-based Trading Technologies has acquired AxeTrading, a London-based provider of fixed income trading solutions. Terms of the transaction were not disclosed.

The acquisition helps broaden TT’s multi-asset capabilities, expanding its coverage to corporate, government, municipal and emerging market bonds as well as over-the-counter (OTC) interest rate swaps. The TT platform provides market access and trade execution through the software-as-a-service (SaaS) delivery model. In addition, the solution provides access to major international exchanges and liquidity platforms. The platform already serves a wide variety of users, including proprietary traders, brokers, money managers, CTAs, hedge funds, commercial hedgers, and risk managers.

AxeTrading provides market participants including banks, broker-dealers and buy-side firms with comprehensive details of fixed income liquidity such as axes, runs and quotes – sourced across electronic venues, messaging platforms and voice channels. Its AxeTrader solution also provides users with tools to enhance best execution and meet regulatory reporting requirements, including MiFID II.

For more than a decade, AxeTrading has provided connectivity to all major fixed income trading venues powered by its customizable pricing and quote management engine. The platform also employs automated workflow management tools, helping market participants overcome the complexity of pricing, quoting and trading fixed income products across multiple venues and protocols.

Keith Todd, CEO of TT, comments: “The fixed income market represents a major opportunity for TT given its size, considerable growth and ongoing adoption of electronic trading. This acquisition is a key element of our strategy to expand beyond listed derivatives and cryptocurrencies, giving us an extensive offering in the fixed income space. AxeTrading and Trading Technologies are both recognized as technology leaders in our respective markets. We are excited to welcome the talented AxeTrading team to TT and to implement our shared vision for the delivery of core fixed income functionality via the industry’s leading Software-as-a-Service (SaaS) platform.”

AxeTrading CEO Greville Lucking added: “This acquisition represents a significant game changer. The combination of AxeTrading’s leading expertise in fixed income markets technology, together with TT’s already established position in listed derivatives and U.S. Treasuries, will provide a comprehensive offering to customers globally. Leveraging the TT SaaS platform to deliver and distribute a true multi-asset offering is exactly what our customers are seeking. We have been extremely impressed with the ambition of the TT team in the fixed income market space, and we are confident that our aligned vision and culture will drive a highly successful future for our customers, partners and employees.”

The buyout comes shortly after the trading software and SaaS provider acquired Chicago-based RCM-X, a technology provider of algorithmic execution strategies and quantitative trading products. The transaction bolsters TT’s platform with the addition of a new product suite of algorithmic execution strategies, trade analytics and TCA services.