MarketAxess Holdings Inc. is set to acquire Pragma, a quantitative trading technology provider, to enhance its AI-driven trading solutions across equities, FX, and fixed-income markets.
Facts
- MarketAxess Holdings Inc. (Nasdaq: MKTX) is acquiring Pragma, a quantitative trading technology provider specializing in algorithmic and analytical services in equities, FX, and fixed-income.
- Pragma’s broker-neutral trading solutions have been utilized globally by asset managers, hedge funds, banks, and exchanges across various asset classes.
- Pragma’s algorithmic trading platform offers AI-driven, multi-asset and multi-market execution solutions to equities and FX clients.
- In the previous year, Pragma facilitated over $2 trillion in algorithmic order flow across multiple asset classes and more than 50 venues.
- MarketAxess introduced Adaptive Auto-X™, an automated execution solution, and achieved the first client algorithmic trade across multiple protocols in US credit.
- Pragma’s deep neural network-based execution engine has improved execution quality and will contribute to MarketAxess’ algorithmic and data-driven analytics development.
- Chris Concannon, CEO of MarketAxess, emphasizes the acquisition’s focus on innovating and providing clients with quantitative, AI-powered technology solutions.
- Pragma’s expertise in FX algos presents an opportunity for FX hedging solutions for MarketAxess’ Emerging Market clients.
- David Mechner, CEO of Pragma, highlights the shared mission of using technology to enhance trading outcomes and efficiency.
- Nash Panchal, CIO of MarketAxess, praises the acquisition for its addition of technology assets and execution algorithm expertise.
- The acquisition is expected to close in the fourth quarter, subject to standard closing conditions.
- Broadhaven is the financial advisor, and WilmerHale LLP is the legal adviser to Pragma. Weil, Gotshal & Manges LLP is MarketAxess’ legal advisor.
