MarketAxess to Acquire LiquidityEdge in $150 Million Deal

The operator of electronic trading platform for fixed-income securities, MarketAxess Holdings Inc. announced this Tuesday that it has entered into an agreement to acquire LiquidityEdge, a provider of an electronic US Treasuries marketplace.

The transaction is valued at $150 million. This includes $100 million in cash and $50 million in MKTX stock, subject to customary purchase price adjustments, the statement released today said.

LiquidityEdge was established in 2015 and offers a bespoke trading ecosystem which connects dealers, Market Makers Market Makers Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Market makers or called dealing desk brokers represent a type of broker that internalize flows and are taking the opposite side of a transaction submitted by their clients. The market making broker is only quoting a feed of prices to its clients. These feeds may or may not be the exact same as the prices quoted on the interbank market.Any order a client enters is processed internally and never goes out to the market, except in rare cases where a market making brokerage identifies a client as a v Read this Term, and institutional investors to trade in the US Treasury market.

Commenting on the acquisition, Chris Concannon, President and Chief Operating Officer of MarketAxess, said: “Through the acquisition of LiquidityEdge, we are bringing rates trading capabilities to MarketAxess to complement our leading position of electronic trading in the global credit markets."

“This will not only enhance the trading experience for our dealer and institutional investor clients, but also offer a truly innovative solution for dealers to stream U.S. Treasury quotes to a tailored audience.”

MarketAxess to expand hedging capabilities

The transaction is expected to close in the final quarter of this year, subject to regulatory approvals. In conjunction with the acquisition announcement, MarketAxess will also be expanding its hedging capabilities to include Treasuring hedging for its credit products.

The initial phase of this new service is expected to launch in the fourth quarter of 2019, the same period when the acquisition is planned to be completed.

“Across a few short years, LiquidityEdge has grown to become one of the leading marketplaces to trade U.S. Treasuries. Offering an alternative to incumbent trading protocols, LiquidityEdge continues to record daily highs in excess of $25 billion,” added Nichola Hunter, Chief Executive Officer of LiquidityEdge.

“That tremendous growth is made possible by our cutting-edge approach to Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term management and superior technology solutions, something also shared by MarketAxess. MarketAxess has been a true pioneer in driving the evolution of the fixed income markets, and we’re thrilled that LiquidityEdge will add to that story.”