Advertisement
Canada markets close in 5 hours 12 minutes

  • S&P/TSX

    21,785.91
    +57.36 (+0.26%)
     

  • S&P 500

    5,030.17
    +11.78 (+0.23%)
     

  • DOW

    38,033.27
    +129.98 (+0.34%)
     

  • CAD/USD

    0.7297
    +0.0016 (+0.21%)
     

  • CRUDE OIL

    79.02
    +0.02 (+0.03%)
     

  • Bitcoin CAD

    81,167.23
    +2,561.34 (+3.26%)
     

  • CMC Crypto 200

    1,264.31
    -6.43 (-0.51%)
     

  • GOLD FUTURES

    2,308.00
    -3.00 (-0.13%)
     

  • RUSSELL 2000

    1,994.01
    +13.78 (+0.70%)
     

  • 10-Yr Bond

    4.6280
    +0.0330 (+0.72%)
     

  • NASDAQ

    15,683.87
    +78.39 (+0.50%)
     

  • VOLATILITY

    15.16
    -0.23 (-1.49%)
     

  • FTSE

    8,177.04
    +55.80 (+0.69%)
     

  • NIKKEI 225

    38,236.07
    -37.98 (-0.10%)
     

  • CAD/EUR

    0.6826
    +0.0033 (+0.49%)
     
MARKETS LIVE BLOG:

STOCKS TRADE HIGHER AS RATE-HIKE FEARS FADE, WITH APPLE ON DECK

Wall Street bracing for drop in revenue, potentially hefty pullback in iPhone sales in China

Tradeweb to buy investment tech firm ICD for $785 million

Niket Nishant
Updated ·2 min read
Billy Hult, CEO of Tradeweb Markets, poses for a portrait in New York City

By Niket Nishant

(Reuters) -Rates and credit trading platform Tradeweb Markets will buy investment technology firm Institutional Cash Distributors (ICD) for $785 million, it said on Monday, as it seeks to boost its appeal to corporate treasury professionals.

Corporate treasury teams manage the liquidity and other financial risks at large companies. They are also tasked with optimizing the companies' cash via short-term investments, and ensuring compliance.

The trading and brokerage industry has seen a wave of dealmaking activity over the past few years as companies look to expand beyond their core offerings.

ADVERTISEMENT

Exchange operator Nasdaq bought regulatory reporting and capital markets software firm Adenza last year. Its rival Intercontinental Exchange, which owns the New York Stock Exchange, bought mortgage software and analytics company Black Knight.

ICD, established in 2003, allows corporate treasury teams to invest in money market funds and other short-term investment products. Its client base includes nearly 17% of the companies that make up the S&P 100 index.

The company also provides trade, analysis and research for investments and has a client retention rate of 99%.

"This transaction is consistent with the management's message of being bolder in mergers and acquisitions and complements the company's strong organic growth," Jefferies analysts wrote, noting that the market serving corporate treasury is "fast-growing".

Tradeweb said the deal, expected to close in the second half of 2024, will be financed with cash on hand.

Tradeweb's shares dipped 0.4%. So far this year, they have gained 12.7% as of their close last week.

Besides rates and credit, the company also allows trading in equities and money markets. Its customers include asset managers, hedge funds, financial institutions and retail clients.

Tradeweb is one of the few electronic trading platforms in the bond market, which has been slower to embrace digitization compared to the stock market.

(Reporting by Niket Nishant in Bengaluru; Editing by Mrigank Dhaniwala and Shailesh Kuber)