Tradeweb Markets (NASDAQ: TW), a publicly-listed operator of electronic marketplaces for money markets, announced on Thursday that it is in advanced talks to acquire Yieldbroker, an Australian government bond and interest rate derivatives trading platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term. Tradeweb anticipates that the transaction could be finalized for AUD 125 million.

Tradeweb Wants to Buy Yieldbroker

According to Tradeweb, the acquisition would combine the two firms' industry experience and trading solutions to create more transparent, liquid fixed-income markets. Additionally, the deal would enable Yieldbroker's domestic clients to access the global multi-asset platform provided by Tradeweb. In addition, Tradeweb's clientele would gain access to pre-trade transparency, enhanced liquidity and broader coverage of the debt capital markets in Australia and New Zealand.

"Australia is home to the 5th largest pension fund market globally, and we believe that this would help grow Tradeweb's Asia Pacific footprint and provide meaningful opportunities for domestic and global clients," Tradeweb commented in the written statement.

However, Tradeweb cautioned that there was no guarantee that a definitive agreement would be reached or that the transaction would be completed. The deal is still subject to Yieldbroker's stockholder approval, final definitive documentation, and regulatory reviews.

ASX Comments on Proposed Sale

The Australian Securities Exchange (ASX), the largest Australian stock exchange with a history dating back to 1871, currently owns about 43% of Yieldbroker, with the remaining shares held by domestic and foreign banks as well as platform employees. In this regard, ASX issued a separate comment on Thursday regarding the potential acquisition Acquisition Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Acquisition means acquiring or taking possession or the securing of property, services, or abilities. To put it simply, it is the act or process of acquiring or gaining. You can acquire a work of art, you can acquire an ability such as speaking another language, you can acquire a business or shares in a company and you can acquire an accountant's service. For example, you can acquire a new car. In a broad sense, Acquisition can mean the act of taking ownership or possession of something. There Read this Term, stating that it would be conducted "on a cash-free, debt-free basis and assuming a normalized level of working capital."

"The Proposed Transaction has been unanimously recommended to Yieldbroker shareholders by the Yieldbroker board. Approval of Yieldbroker shareholders is being sought to meet certain Yieldbroker constitutional requirements," ASX wrote.

The value of ASX shares under the terms of the transaction is approximately AUD 55 million, including transaction costs. The current book value of ASX's interest in Yieldbroker is around AUD 30 million. ASX stated that its participation in the transaction is subject to the decision of the Board of Directors.

Tradeweb Reports 23^rd Consecutive Year of Revenue Growth

In February, Tradeweb reported $293 million in revenue for the fourth quarter of 2022. The figure jumped 5.8 percent year-over-year. Further, the company witnessed a massive uptick of 65 percent in its quarterly net income, which came in at $99 million. It was boosted by a lower tax expense related to changes in our deferred tax assets and an increase in interest income. On the other hand, the adjusted income increased by 17.2 percent to $116.9 million.

"Tradeweb reported its 23rd consecutive year of revenue growth in 2022," Billy Hult, the CEO of Tradeweb, said.

Also, Tradeweb generated a full-year ADV (average daily volume) of $1.1 trillion in 2022. This represents a growth of 9.87% year-over-year (YoY).

Our average daily trading volume for December 2022 was $1.02tn, up 11.6% year-over-year. We also reported strong volumes for Q4 and full-year 2022. Read more here: https://t.co/3nZLPMfoK1pic.twitter.com/GDizk0WMaA

— Tradeweb (@Tradeweb) January 5, 2023

In the most recent update, the company presented a new market data service allowing real-time calculation of Indicative Net Asset Values (iNAVs) for exchange-traded funds (ETFs).