Tradeweb Finalizes Acquisition of Algorithmic Execution Specialist r8fin

January 22, 2024 - Tradeweb has announced the completion of its acquisition of r8fin, a technology provider specialising in algorithmic-based execution for U.S. Treasuries and interest rate futures. The acquisition, initially announced in November 2023, is now finalised.

The incorporation of r8fin's advanced execution capabilities into Tradeweb’s electronic trading platform for U.S. Treasuries aims to offer clients a comprehensive trading solution for U.S. Treasury bonds and associated futures.

Billy Hult, CEO of Tradeweb, commented, "We are developing an integrated approach to accessing the U.S. 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.”

Tradeweb anticipates that this acquisition will not only modestly enhance its revenue growth and operating margins but also be accretive to its earnings per share in 2024.

r8fin's offerings include a collection of algorithmic-based tools and a thin-client execution management system (EMS) application, supporting the execution of futures and cash trades. The technology has been instrumental for a diverse client base, including relative value hedge funds, systematic hedge funds, professional trading firms, and primary dealers. In 2023, r8fin's technology facilitated algorithmic-based execution averaging over $24 billion notional in U.S. Treasuries and 375,000 futures contracts daily.

Tradeweb is the leading electronic trading platform for U.S. Treasuries, boasting a network that covers institutional, wholesale, and retail markets. Tradeweb pioneered the first multi-dealer online marketplace for U.S. Treasuries over two decades ago, and in 2023, it managed an average of $146 billion per day in U.S. Treasury trading.