MarketAxess Snaps Up Pragma

Fixed income trading platform MarketAxess has entered into an agreement to buy FX, fixed income and equities algo trading technology provider Pragma. Terms of the deal, which is expected to close in Q4 2023, were not disclosed.

MarketAxess says Pragma will help it accelerate development of execution algorithms and data-driven analytics across all fixed-income products. It adds Pragma handled over $2 trillion-worth of algo orders across its markets in 2022.

Chris Concannon, CEO of MarketAxess, suggests that Pragma’s FX services will continue to be offered, in spite of the buyer being a fixed income-only platform. He says, “In addition to accelerating our leadership in the fixed-income automation and algo space, Pragma’s years of expertise with FX algos provides a unique opportunity for FX hedging solutions for our emerging market clients.”

Earlier this year, MarketAxess announced the first client algorithmic trade executed across multiple protocols in US credit using Adaptive Auto-X, the firm’s multi-protocol automated execution solution currently in pilot. In 2020, Pragma introduced a deep neural network-based execution engine that controls the routing, sizing, pricing, and timing of orders, and has shown a robust improvement in execution quality, the firm claims.

“Pragma and MarketAxess share a common mission of using technology and automation to improve trader efficiency and generate superior trading outcomes for investors,” says David Mechner, Pragma’s founder and CEO. “MarketAxess’ scale and resources will amplify the results we can deliver for clients with the cutting edge technologies we’ve built – both for our existing clients in equities and FX, and for MarketAxess’ large client network as we continue developing new solutions in fixed-income.”

Nash Panchal, chief information officer of MarketAxess, adds, “This acquisition represents a major milestone in our tech story. The Pragma team brings invaluable technology assets and deep expertise in execution algorithms and automation – from high performance workflow solutions to artificial intelligence in trading equities and FX. We look forward to building upon those capabilities to enhance the services we provide our clients in fixed-income.”