6 December 2021

Nasdaq to Sell U.S. Fixed-Income Platform to Tradeweb Markets

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Nasdaq Inc. has agreed to sell its U.S. fixed-income electronic trading platform to an affiliate of Tradeweb Markets Inc., a global operator of electronic marketplaces for rates, credit, equities and money markets, the two companies announced Tuesday.

The Nasdaq Fixed Income platform formerly known as eSpeed is a central limit order book, or CLOB, for electronic trading in on-the-run U.S. Treasuries, which are the most recent ones released for a certain maturity. The platform will become part of Tradeweb's Dealerweb, serving the wholesale sector.

When the $190 million, all-cash transaction closes later in 2021, subject to regulatory approval and other conditions, Dealerweb clients can use either protocol, Tradeweb said in a statement.

Tradeweb CEO Lee Olesky said in the statement that the additional choice will mean more connected participants and lower cost, and allows the firm to introduce more innovation for wholesale markets. "This is a great opportunity for us to add value to the wholesale U.S. Treasuries market — one of the world's largest and most liquid cash markets," Mr. Olesky said.

Nasdaq said in a separate statement that the decision to sell the fixed-income platform aligns with its corporate strategy to concentrate on being a major technology and analytics provider to the global capital markets. It intends to use the sale proceeds and other sources of cash to repurchase shares to offset dilution to its non-GAAP earnings per share. The proceeds from the sale, the remaining tax benefits related to its 2013 purchase of eSpeed for $750 million, and capital expected when the transaction closes are estimated at $700 million.

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