Internet-based credit trading platform Market Axess is to acquire Trading Edge, which owns and operates the BondLink fixed income marketplace.
Market Axess says it will integrate Trading Edge's anonymous trading capability with its current platform, offering investors the option of immediate liquidity through disclosed counter party or anonymous trading.
Richard McVey, chief executive officer of Market Axess, says: "We believe investor response to having both multi-dealer and anonymous trading models on one platform will be overwhelmingly positive."
The combined trading system will offer online primary and secondary trading in investment grade corporate, high yield, emerging market, municipal and convertible bonds and fixed income research from leading global bond dealers. Market Axess expects to be live in a range of European credit instruments in the second quarter.
The combined company will have approximately 500 institutions and 2000 users active upon closing. Market Axess' current investors and dealers include ABN Amro, Bear Stearns, Credit Suisse First Boston, Deutsche Bank, J P Morgan Chase, Lehman Brothers and UBS Warburg. Trading Edge shareholders include some of the world's top venture capital firms.