Nasdaq, the US exchange, has agreed to sell its US Treasuries trading business to Tradeweb for $190m, creating a big loss on the disposal.
Nasdaq bought the business, known as eSpeed, in 2013 from BGC Partners for an initial $750m, to push into electronic trading in one of the world’s biggest and most important markets.
But its market share subsequently dwindled to 4 per cent, about $13bn a day in December, according to Greenwich, the consultancy. That put it far behind leaders like CME Group, Tradeweb and Bloomberg.
Tradeweb will pay $190m in cash as part of the deal. However, the disposal will also trigger a gross $500m payment in Nasdaq shares to Newmark, which spun off from BCG.
The 2013 deal included potential share-based payments to BGC, taking the total value of that deal to $1.2bn. The transaction with Tradeweb announced on Tuesday includes a final pay-off from Nasdaq to BGC of 6.2m shares.
Nasdaq said it will receive proceeds of $700m in total, which includes the cash payment from Tradeweb and the release of working capital.
In one of her first moves as Nasdaq’s chief executive, Adena Friedman took a $578m charge related to the business, largely due to a writedown of the eSpeed trade name.