Thomson Financial has announced that it has entered a partnership with nine large global dealers, which will invest approximately $180 million to purchase a minority stake in the system – Thomson will remain the majority owner. The dealers are: Credit Suisse, Deutsche Bank, Goldman Sachs, JPMorgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, The Royal Bank of Scotland, and UBS. All nine firms have committed to participate in TradeWeb’s interest rate swaps business, as well as joining other TradeWeb markets. Thomson Financial will contribute its equity trading-related assets, including AutEx and the Thomson Order Routing network to TradeWeb.

What does this mean for LiquidityHub? Eight of the 15 dealers are involved, only BarCap missing in terms of the major players, maybe Citi….

At $180m, by my calculations, that means they’ve taken maybe 12% (based on a $1.5bn valuation). I’d heard 40% mentioned, but $180m certainly wouldn’t cover that.

Full story on Finextra.

PS: Word is that the $180m was for 20% with options to buy more later. Also it isn’t as simple as dividing 20% by 9 dealers. Some (GS no doubt)have have a larger share than others.

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