Tradeweb, operator of electronic marketplaces for rates, credit, equities and money markets, is set to acquire r8fin, a technology provider that specialises in algorithmic-based execution for US Treasuries and interest rate futures. Details of the transaction have not been disclosed.
Founded in 2016, r8fin provides a suite of algorithmic-based tools as well as a thin-client execution management system (EMS) trading application to facilitate futures and cash trades. The solutions will join Tradeweb’s existing Dealerweb Active Streams, Dealerweb Central Limit Order Book (CLOB), Tradeweb Request-for-Quote (RFQ) and Tradeweb AiEX (Automated Intelligent Execution) offerings.
Speaking to The DESK, Tradeweb CEO Billy Hult said, “r8fin brings cutting-edge technology with a business that’s very much in Tradeweb’s wheelhouse. We want to deliver an integrated product suite for accessing the U.S. Treasury market through multiple liquidity pools across cash and futures. That’s how our clients see it, and that’s what we want to deliver on Tradeweb.”
“This marks another step forward in the execution of our vision to deliver an integrated product suite for accessing the U.S. Treasury market through multiple liquidity pools across cash and futures. Beyond that, as we look ahead, we believe 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,” Hult added.
Tradeweb expects the acquisition to modestly enhance revenue growth, operating margins and be accretive to 2024 earnings per share. The acquisition is expected to close in Q1 2024.
r8fin has a client base that includes 65 relative value hedge funds, systematic hedge funds, professional trading firms and primary dealers. r8fin technology facilitates algorithmic-based execution for an average of more than $23 billion notional in US Treasury bonds and 350,000 futures contracts per day.
r8fin co-founder Assad Fehmy, who will join Tradeweb upon the closing of this acquisition, said, “Combining with Tradeweb will further amplify and scale the r8fin technology, providing customers with broader integrated execution solutions and asset classes. It has been an incredible experience watching our technology and network evolve over the last seven years, and I am confident r8fin will be positioned for continued growth in this new chapter as part of Tradeweb.”
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