MarketAxess Completes Acquisition of LiquidityEdge

The deal closed on November 1, 2019.

MarketAxess Holdings, Inc. announced this Monday that it has completed its previously announced acquisition of LiquidityEdge, a provider of an electronic US treasuries marketplace.

Following the approval of regulatory authorities, the acquisition was completed on November 1, 2019. Altogether, the deal was worth around $150 million. This included $100 million in cash and 146,450 shares of MarketAxess common stock.

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As Finance Magnates reported, MarketAxess, which is an operator of an electronic trading platform for fixed income securities, announced that it would be acquiring LiquidtyEdge earlier this year in August.

LiquidityEdge was established in 2015 and offered a bespoke trading ecosystem that connects dealers, market-makers, and institutional investors to trade in the US Treasury market.

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According to earlier statements, the deal has closed within the expected time frame, as the company expected the acquisition to be completed in the fourth quarter of this year. 

MarketAxess to expand hedging capabilities

Following the acquisition, 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.

Commenting on the acquisition, Chris Concannon, President and Chief Operating Officer of MarketAxess, said: “We’re thrilled to welcome the LiquidityEdge team to MarketAxess and look forward to the expansion of our fixed income trading capabilities to include U.S. Treasuries.”

“We see a strategic opportunity to grow LiquidityEdge’s existing dealer-to-dealer business by building custom, dealer-to-client connections, which we hope to launch in the first half of 2020. Additionally, the acquisition supports the further expansion of our Treasury hedging capabilities, with the first phase of these enhancements set to launch in the coming weeks.” 

“These projects are just a few examples of the value we see LiquidityEdge adding to the trading experience of our global institutional investor and dealer client base.”

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