Wall Street Startup Backed by Soros and Thiel is in Talks to do a Big Deal – Business Insider
January 11, 2017 \ 2 Comments
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
“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.
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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