MarketAxess announced its entered into a definitive agreement to acquire Pragma, a quantitative trading technology provider specializing in algorithmic and analytical services in equities, FX and fixed income. The transaction is expected to close in Q4 2023. Financial details were not disclosed.
Pragma’s algorithmic trading platform and quantitative execution solutions provide equities and FX clients with automated, artificial intelligence (AI) driven, multi-asset and multi-market execution solutions. Last year, Pragma handled over $2 trillion of algorithmic order flow in multiple asset classes on behalf of clients across over 50 venues.
Earlier this year, MarketAxess announced the first client algorithmic trade executed across multiple protocols in US credit using Adaptive Auto-X, its multi-protocol automated execution solution currently in pilot. In 2020, Pragma introduced a deep neural network-based execution engine that controls the routing, sizing, pricing, and timing of orders, and has shown a robust improvement in execution quality. Pragma’s algorithmic platform and technology team will help MarketAxess accelerate development of execution algorithms and data-driven analytics across all fixed income products.
Chris Concannon, CEO of MarketAxess, said in a statement: “In addition to accelerating our leadership in the fixed income automation and algo space, Pragma’s years of expertise with FX algos provides a unique opportunity for FX hedging solutions for our emerging market clients.”
David Mechner, Pragma’s founder and CEO, said in a statement: “Pragma and MarketAxess share a common mission of using technology and automation to improve trader efficiency and generate superior trading outcomes for investors. MarketAxess’ scale and resources will amplify the results we can deliver for clients with the cutting edge technologies we’ve built – both for our existing clients in equities and FX, and for MarketAxess’ large client network as we continue developing new solutions in fixed-income.”