MarketAxess Signs $150 Million Acquisition of LiquidityEdge

MarketAxess will add rates trading capabilities and improve trading experience of its institutional investor and dealer clients.

MarketAxess, a US fixed income electronic trading platform for institutional investors and dealers, has announced the acquisition of LiquidityEdge, a US trading venue that facilitates genuine liquidity for US Treasuries. Valued at $150 Mn, the acquisition is subject to customary purchase price adjustments. The total valuation of the acquisition includes $50 Mn in MarketAxess stock and $100 Mn in cash. According to a recent press release by MarketAxess, the combination will be compelling for global fixed income market participants. MarketAxess has a global trading network of more than 1,600 institutional participants. On the other hand, LiquidityEdge has direct dealer streaming capabilities and innovative custom liquidity pools for off-the-run and on-the-run US Treasuries.

“Our company, across a few short years, has advanced to become one of the top marketplaces to trade US Treasuries. Providing an alternative to incumbent trading protocols, our company has continued to record daily highs in excess of $25 Bn. This outstanding growth has been made possible by our company’s superior technology solutions and cutting-edge approach to liquidity management, something that MarketAxess also shares. MarketAxess has been a true pioneer in driving the fixed income markets’ evolution, and we are excited that our company will be adding to that story,” said CEO of LiquidityEdge, Nichola Hunter.

Transaction to complete in fourth quarter of 2019

“With the acquisition of LiquidityEdge, we bring rates trading capabilities to our company for complementing MarketAxess’ top position of electronic trading in the global credit markets. This will not only be enhancing the trading experience for our institutional investor and dealer clients but also be offering for dealers a truly innovation solution for streaming US Treasury quotes to a tailored audience,” said President of MarketAxess, Chris Concannon.

Upon satisfaction of customary closing conditions, which include the receipt of necessary regulatory approvals, the acquisition is expected to see closure in Q4 2019. Along with the acquisition, MarketAxess has announced the extension of hedging capabilities for including Treasury hedging for its credit products. The company will use LiquidityEdge’s strong liquidity network and technology infrastructure.

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