MarketAxess Completes Acquisition of LiquidityEdge
November 04 2019 - 8:00AM
MarketAxess Holdings Inc. (Nasdaq: MKTX), the operator of a leading
electronic trading platform for fixed income securities, and the
provider of market data and post-trade services for the global
fixed-income markets, has completed its previously announced
acquisition of LiquidityEdge, a leading provider of an electronic
U.S. Treasuries marketplace.
The acquisition was completed on November 1, 2019 following
approval from the necessary regulatory authorities. The purchase
price is approximately $150 million, including $100 million in cash
and 146,450 shares of MarketAxess common stock, subject to
customary purchase price adjustments.
Chris Concannon, President and Chief Operating Officer of
MarketAxess, commented, “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.”
About MarketAxessMarketAxess operates a
leading, institutional electronic trading platform delivering
expanded liquidity opportunities, improved execution quality and
significant cost savings across global fixed income markets. A
record $1.7 trillion of U.S. investment-grade bonds, U.S. high
yield bonds, emerging market debt, Eurobonds and other fixed income
securities traded through MarketAxess’ patented trading technology
in 2018. The global community of 1,600 firms trading on
MarketAxess today include the world’s leading asset managers and
institutional broker-dealers. MarketAxess’ award-winning Open
Trading™ marketplace is regarded as the preferred all-to-all
trading solution in the global credit markets, creating a unique
liquidity pool for a broad range of credit market participants.
Drawing on its deep data and analytical resources, MarketAxess
enables automated trading solutions and, through its Trax®
division, provides a range of pre- and post-trade services and
products.
MarketAxess is headquartered in New York and has offices in
London, Amsterdam, Boston, Chicago, Los Angeles, Miami, Salt Lake
City, San Francisco, São Paulo, Hong Kong and Singapore. For more
information, please visit www.marketaxess.com.
About LiquidityEdgeLiquidityEdge, a MarketAxess
company, offers an alternative trading model for the U.S. Treasury
market with a choice of custom, relationship-based execution
models. With LiquidityEdge’s leading technology, institutional
investor and dealer clients have greater control over their trading
strategy with access to one-to-one or many-to-many trading models,
facilitating a combination of anonymous and disclosed streaming of
executable prices while creating a personalized order book for each
participant.
Founded in 2015, LiquidityEdge is an SEC registered
broker-dealer and member of FINRA and SIPC. LiquidityEdge is
headquartered in New York and has an office in London. For more
information, please visit:
www.marketaxess.com/trade/us-treasuries.
Cautionary Note Regarding Forward-Looking
StatementsThis press release may contain forward-looking
statements, including statements about the outlook and prospects
for Company and industry growth, as well as statements about the
Company’s future financial and operating performance. These
and other statements that relate to future results and events are
based on MarketAxess’ current expectations. The Company’s actual
results in future periods may differ materially from those
currently expected or desired because of a number of risks and
uncertainties, including: global economic, political and market
factors; the volatility of financial services markets generally;
the level of trading volume transacted on the MarketAxess platform;
the absolute level and direction of interest rates and the
corresponding volatility in the corporate fixed-income market; the
level and intensity of competition in the fixed-income electronic
trading industry and the pricing pressures that may result; the
variability of our growth rate; the rapidly evolving nature of the
electronic financial services industry; our ability to introduce
new fee plans and our clients’ response; our exposure to risks
resulting from non-performance by counterparties to transactions
executed between our clients in which we act as an intermediary in
matched principal trades; our dependence on our broker-dealer
clients; the loss of any of our significant institutional investor
clients; our ability to develop new products and offerings and the
market’s acceptance of those products; the effect of rapid market
or technological changes on us and the users of our technology; our
ability to successfully maintain the integrity of our trading
platform and our response to system failures, capacity constraints
and business interruptions; our vulnerability to cyber security
risks; our ability to protect our intellectual property rights or
technology and defend against intellectual property infringement or
other claims; our ability to enter into strategic alliances and to
acquire other businesses and successfully integrate them with our
business; our ability to comply with new and existing laws, rules
and regulations both domestically and internationally; our ability
to maintain effective compliance and risk management methods; the
strain of growth initiatives on management and other resources; our
future capital needs and our ability to obtain capital when needed;
limitations on our operating flexibility contained in our credit
agreement; and other factors. The Company undertakes no obligation
to update any forward-looking statements, whether as a result of
new information, future events or otherwise. More information about
these and other factors affecting MarketAxess’ business and
prospects is contained in MarketAxess’ periodic filings with the
Securities and Exchange Commission and can be accessed at
www.marketaxess.com.
MarketAxess Media Relations Contacts:Kyle
WhiteMarketAxess Holdings Inc.+1 212 813
6355kwhite@marketaxess.com
Bill McBrideRF | Binder +1 917 239
6726MarketAxessPR@rfbinder.com
Investor Relations Contact:David
CresciMarketAxess Holdings Inc.+1 212 813
6027dcresci@marketaxess.com
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