Tradeweb Markets agreed to buy BondDesk Group LLC in a move that would combine two operators of alternative trading systems that serve the municipal bond market, among other fixed income marketplaces.
Tradeweb, which builds and operates global fixed-income and derivatives marketplaces, announced in its purchase on Thursday of BondDesk, a U.S.-based developer of retail fixed income wealth management and trading technology, its intention to broaden its offering to retail fixed-income customers.
“Tradeweb has always focused on driving improved liquidity, efficiency and transparency in fixed income through electronic trading, and the acquisition of BondDesk will allow us to work together in delivering new and innovative solutions while providing leading service in the retail marketplace,” said Lee Olesky, Tradeweb Markets chief executive. “As the over-the-counter markets continue to move more toward electronic platforms, Tradeweb will be well-positioned to help drive the evolution of market structure as liquidity between institutional and retail markets becomes more interconnected.”
The deal should enhance overall liquidity, transparency and efficiency for broker-dealers, as well as for retail and middle-market investors, Tradeweb said in a statement.
Tradeweb has an established presence with institutional clients and serves buy- and sell-side clients with electronic marketplaces. As the deal is still subject to regulatory approval, the firm said it will not discuss strategy, personnel numbers or financial details.
Tradeweb Markets serves the dealer-to-customer markets through its Tradeweb institutional platform, inter-dealer trading through Dealerweb, and the retail fixed-income community on Tradeweb Retail. Collectively, the firm said it does more than $250 billion a day on all Tradeweb markets, but could not break down any of its numbers into those involving specifically the municipal market.
BondDesk offers fixed income solutions to more than 2,000 investment firms. Through its BondDesk Alternative Trading System, it gives them access to an aggregated pool of more than 170,000 daily live offerings of odd-lot fixed-income securities in many asset classes.
The BondDesk ATS executes up to 20,000 transactions a day.
Upon closing, Howard Edelstein, chairman and chief executive of BondDesk Group will step down from his positions and return to his other portfolio and board interests, as well as his role as an operating partner in private equity. John Cahalane, managing director and head of Tradeweb Retail, will lead the combined business at that point.
Tradeweb and BondDesk joined two other firms that operate an ATS: Knight BondPoint and TMC Bonds LLC.
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