Nasdaq abandons its ambitions in bond trading

Posted on Feb. 2021 at 19:22

The Nasdaq says goodbye to bond trading. The stock market operator, a specialist in technology stocks, announced on Tuesday that it was going to sell its “fixed income” branch to Tradeweb, mainly active in Treasuries and US government bonds. This is the old eSpeed, acquired in 2013 from BGC Partners, for 750 million dollars. ” At the time, Nasdaq had a strategy of growth and diversification through acquisition ”, emphasizes Antoine Pertriaux, head of research at Adamantia.

The goal was to gain a foothold in the US government debt market, one of the largest and deepest in the world. But this activity never really took off against heavyweights like Bloomberg, CME Group and Tradeweb. According to estimates by consulting firm Greenwich, its market share fell to 4% last December, with volumes in the order of $ 13 billion per day. Nasdaq Fixed Income was unable to take advantage of the momentum created by the fight against Covid, between frantic Treasury issuances to finance the deficit, the American stimulus plans – pushing the American debt to almost 21 trillion -, and the massive purchases by the Federal Reserve to support the economy.

Leave a Reply

Your email address will not be published. Required fields are marked *