Tradeweb Markets announced it has completed its $125 million acquisition of r8fin, a technology provider that specializes in algorithmic-based execution for US Treasuries and interest rate futures. Integrating r8fin’s intelligent execution capabilities into Tradeweb’s leading electronic trading platform for US Treasuries will help clients take a broad-based approach to trading US Treasury bonds and related futures.
Tradeweb CEO Billy Hult said in a statement: “We are developing an integrated approach to accessing the US Treasury market through multiple liquidity pools across cash and futures – and r8fin is an important part of that approach. This acquisition is very much in Tradeweb’s wheelhouse, and we believe it represents a meaningful step forward in how electronic trading can unlock new possibilities for relative value hedge funds and other clients. We are also pleased to welcome r8fin co-founder Assad Fehmy to Tradeweb.”
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. r8fin has a client base that includes 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 $24 billion notional in US Treasuries and 375,000 futures contracts per day in 2023.
Tradeweb expects the acquisition to modestly enhance revenue growth, operating margins and be accretive to 2024 earnings per share.