Tradeweb, a leading over-the-counter, online marketplace, announced today that it is has completed the acquisition of Hilliard Farber, an inter-dealer voice brokerage for mortgage-related and other U.S. securities. Terms of the deal were not disclosed. Tradeweb additionally plans to launch an electronic inter-dealer platform for pass-through mortgage-backed securities in early 2009, complementing Hilliard Farber's voice offering.
The formation of an inter-dealer business is a natural extension for Tradeweb, which has played a pioneering role in developing electronic customer-to-dealer trading of debt securities and derivatives since 1998. Hilliard Farber provides extensive voice broking experience and expertise, as well as an extensive network of trading desk relationships, off which Tradeweb can leverage its decade of leadership in electronic trading to build a broader inter-dealer business.
Hilliard Farber was one of the first inter-dealer brokers to trade mortgage-backed securities, when it opened a mid-town Manhattan office in 1975. Since then, it has grown to become one of the largest boutique brokers.
Hilliard Farber's brokers will continue to operate under the Hilliard Farber brand, and will offer voice broking in all their current markets, including U.S. Treasury securities, repurchase agreements, as well as specialty mortgage products: pass-through mortgage-backed securities, adjustable-rate mortgages and specified pools.
"Tradeweb is strongly positioned to develop an inter-dealer business," said Lee Olesky, CEO of Tradeweb. "Our relationships with the dealers date back to the roots of e-trading; our expertise at building markets has been thoroughly tested; and we have a proven track record of delivering greater efficiency to both institutional clients and dealers."
"Hill provides a strong foundation on which we can build our inter-dealer business," said Billy Hult, President of Tradeweb, who will now oversee Hill Farber and Tradeweb's electronic inter-dealer markets. "Its extensive brokerage experience, combined with Tradeweb's reputation in the electronic markets, promises to deliver a powerful offering to the dealer community."
"Tradeweb was a logical choice as we examined the strategic options for the business. It has a proven ability to create liquid and efficient electronic markets," said Hilliard Farber, founder and owner of the company.
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