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Wall Street Startup Backed by Soros and Thiel is in Talks to do a Big Deal – Business Insider 

Full Article: Business Insider

Electronifie, a bond trading platform led by former Goldman Sachs trader Amar Kuchinad, is in exclusive talks to be acquired by TruMid 

Comments
  • Jester
    JesterJanuary 15, 2017"I hope for the best for these two initiatives, but the numbers don’t look good. Mainly, the institutional corporate bond market simply doesn’t have enough activity to create a meaningful electronic trading business around. One thing is clear. This new combined entity will have to reduce overhead considerably to get anywhere near cash-flow positive in the next few years.…"
  • Wolfman
    WolfmanJanuary 13, 2017""The combination would combine the two platforms' user bases". Electonifie has "unique users" and will be added to "TruMid's actively engaged users". I'm not clear as to what this really means for the merger. There's no clarity as to how much, if any, volume Electronifie has attracted or which platform will be used. The market is looking for an alternative to MarketAxess, that's clear from the number of platforms run by smart people who wouldn't invest without some du…"

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2 Comments on "Wall Street Startup Backed by Soros and Thiel is in Talks to do a Big Deal – Business Insider "

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Wolfman
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“The combination would combine the two platforms’ user bases”.
Electonifie has “unique users” and will be added to “TruMid’s actively engaged users”. I’m not clear as to what this really means for the merger. There’s no clarity as to how much, if any, volume Electronifie has attracted or which platform will be used.
The market is looking for an alternative to MarketAxess, that’s clear from the number of platforms run by smart people who wouldn’t invest without some due diligence, but the benefits of this particular effort just don’t jump out at me.

Jester
Member

I hope for the best for these two initiatives, but the numbers don’t look good. Mainly, the institutional corporate bond market simply doesn’t have enough activity to create a meaningful electronic trading business around. One thing is clear. This new combined entity will have to reduce overhead considerably to get anywhere near cash-flow positive in the next few years.

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