Strategic Play: MarketAxess Gains Majority Control of RFQ-hub

MarketAxess Holdings Inc. MKTX recently acquired a majority stake in RFQ-hub Holdings LLC, a global request-for-quote (RFQ) platform that facilitates trading in ETFs, derivatives, and structured products. The platform supports both listed and over-the-counter (OTC) trades across multiple asset classes. MKTX now holds around a 90% controlling stake in the platform.

The remaining ownership stays with original consortium members like Virtu Financial, Inc. VIRT, BlackRock, Inc. BLK, Citadel Securities, Flow Traders and Jane Street Capital, who will continue to collaborate with MarketAxess. This acquisition strengthens MarketAxess’ position in the ETF and derivatives space by integrating RFQ-hub’s technology with its existing network.

The move is expected to broaden MKTX's multi-asset capabilities and allow it to serve clients looking to manage credit risk and bond liquidity through ETF and derivative tools. The deal also unlocks growth opportunities by leveraging RFQ-hub’s global presence and existing partnerships.

Gaining majority control will likely give MarketAxess more direct influence over RFQ-hub’s operations and potential revenue streams. The move aligns with the company’s long-term strategy to diversify beyond core fixed-income trading. This could support new revenue growth and enhance product offerings, especially at a time when MarketAxess is facing modest declines in quarterly revenue and earnings, as seen in its last reported quarter.

RFQ-hub started operations in 2008, and in 2022, Virtu Financial announced the formation of this consortium, aimed at growing the platform. MarketAxess has been actively focused on accelerating growth in the fixed income space lately.

Last October, it formed a strategic data partnership with S&P Global Market Intelligence aimed at boosting transparency and operational efficiency in fixed income trading. Earlier, in September 2024, the company deepened its decade-long collaboration with BlackRock by integrating its credit trading protocols, pricing tools, and data into BlackRock’s Aladdin OEMS, enhancing functionality for institutional clients and streamlining credit market workflows.

Price Performance & Zacks Rank

MarketAxess shares have declined 6.7% in the year-to-date period against the 8.3% jump of the industry it belongs to. Nevertheless, the stock currently has a Zacks Rank #3 (Hold).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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