MarketAxess to Acquire MuniBrokers to Expand Municipal Bond Offering

MarketAxess Holdings Inc. has recently announced that it has entered into an agreement to acquire MuniBrokers, a central electronic venue which services municipal bond inter-dealer brokers and dealers.

MarketAxess operates an electronic trading platform for fixed-income securities. The company also provides market data and post-trade services for the fixed income markets.

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MuniBrokers, on the other hand, connects municipal securities broker’s brokers, institutional traders and broker-dealers through a central electronic marketplace. Via the marketplace, more than $400 million taxable and tax-exempt municipal bonds can be traded each day.

MarketAxess to expand existing municipal bond trading solution

The acquisition, which is expected to close in the fourth quarter of 2020, will allow MarketAxess to expand its existing municipal bond trading solution for global institutional investors and dealer clients.

The transaction will also complement the company’s recent expansion of its liquidity provision for taxable municipal bond securities beyond the United States, through its trading venues in the United Kingdom, European Union and Singapore.

Commenting on the acquisition, Chris Concannon, President and Chief Operating Officer of MarketAxess, said in the statement: “The acquisition of MuniBrokers further bolsters our growing footprint in the municipal bond market. 

“Connecting our leading trading technology with the liquidity of one of the industry’s largest electronic inter-dealer marketplace creates a compelling and diverse liquidity solution that will ultimately deliver an improved execution experience.”

HTD to continue to use MuniBrokers’ platform

In addition to the acquisition of MuniBrokers, MarketAxess has agreed with Hartfield, Titus & Donnelly LLC (HTD), which owns MuniBrokers, that it will continue to use MuniBrokers’ platform to provide liquidity.

“This relationship represents a great opportunity in the intermediated Municipal Securities market, leveraging the time-tested strengths of MuniBrokers, the experience of HTD as the leading Broker’s Broker and the industry-leading capabilities of MarketAxess,” added Ron Purpora, Chairman of parent company Hartfield, Titus & Donnelly in the statement. “We are eager to demonstrate the benefits of this relationship to the market and to our customers.”

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