Citadel Securities Leads $25 Million Investment in Fixed Income Tech Firm TransFICC

TransFICC, a provider of low-latency connectivity and workflow services for Fixed Income and Derivatives markets, has secured $25 million in Series B funding led by Citadel Securities, with participation from BlackFin Tech and existing investors, the company announced today.

The latest funding round brings the total amount raised by TransFICC to $50 million, with previous investments from AlbionVC, BlackFin Tech, Citadel Securities, Citi, HSBC, Illuminate Financial, ING, and neosfer, the early-stage investor and innovation unit of Commerzbank Group.

"Citadel Securities has a long history of developing innovative solutions to help our clients and partners address their most complex liquidity and execution challenges. We are pleased to partner with TransFICC to shape the future of Fixed Income market making through increased automation, connectivity and efficiency," said Amit Bhuchar from Citadel Securities.

Michele Foradori from BlackFin Tech added, "TransFICC is providing a piece of critical infrastructure for Fixed Income markets. We are excited by the pace of innovation taking place in this space and fully embrace Steve, Judd and Tom's vision to make TransFICC the go-to solution for all market participants to electronically trade any Fixed Income product."

According to the company, structural changes in the market, including increased adoption of algorithmic tools, growth of all-to-all markets and rising Fixed Income ETFs, are driving up trading volumes and creating increased demand for automated solutions.

Steve Toland, co-Founder, TransFICC

Steve Toland, TransFICC co-Founder, said, "Wide-ranging structural changes, including the increased adoption of algo tools, the growth of all-to-all markets and the rise of Fixed Income ETFs are driving volumes up, creating increased demand for automated solutions. TransFICC launched TransACT (Automated Customer Trading) last year to address this need in Credit and is now extending asset class coverage to Government Bonds, IRS and Repo."

Juddd Gaddie, TransFICC co-Founder, added, “Now more than ever, market makers need to quote quickly to win business. TransFICC has already built data centre hosting in North America, Europe and Asia. Additionally, we are hosting our client’s applications on the TransFICC platform to reduce latency.”

Tom McKee, TransFICC co-Founder, also commented, “Fixed Income trading firms need to support and expand venues and workflows while maximising efficiency. However, the time and development costs of connectivity can be significant. At TransFICC, our intention is to enhance our venue and workflow support so that clients can connect more quickly and at a lower cost.”

TransFICC currently serves 20 market participants and three exchange groups.