JP Morgan has taken an equity stake in online fixed income marketplace, TradeWeb, and will obtain a seat on its board of managers.
The investment banking arm of JP Morgan Chase & Co. joins other investors Credit Suisse First Boston, Deutsche Bank, Goldman Sachs, Lehman Brothers, Merrill Lynch, Morgan Stanley and Salomon Smith Barney. Financial terms were not disclosed.
JP Morgan will now serve as a market maker for all of TradeWeb's online fixed-income markets including TBA mortgages and US commercial paper. It previously participated in TradeWeb's treasuries and agencies markets, and in its euro sovereign online market operated by TradeWeb Europe Ltd.
Mark Werner, managing director and head of global rate securities at JP Morgan, comments: "This financial investment gives us an equity stake in a rapidly growing financial services business. More importantly, the investment cements our relationship with a company that provides a service that is becoming indispensable to our clients. This is a win-win partnership."
TradeWeb recently passed $8 trillion in total trading volume since trading began in 1998, with half of that volume occurring within the past seven months.