Two Wall Street trading startups are in talks to combine forces.
Electronifie, a bond-trading platform led by former Goldman Sachs trader Amar Kuchinad, is in exclusive talks to be acquired by TruMid, another trading startup backed by George Soros and Peter Thiel.
Electronifie announced the talks in a note seen by Business Insider that was sent to clients January 10.
“We believe that combining our businesses is in the best interest of our clients, who will realise the immediate benefit of a vastly expanded user network and technology footprint,” the note said.
The two firms are new entrants to the world of electronic bond trading, and set out to help match buyers and sellers in the bond market at a time when many are complaining about reduced liquidity. The combination would combine the two platforms’ user bases, creating a single platform with 350 institutional users and 60 broker-dealers.
“The hundreds of users unique to Electronifie will be added to TruMid’s actively-engaged users, who in aggregate have traded nearly $5bn of bonds in the past 6 months,” the note said. “We believe that the increased size and diversity of our combined user network will enhance the all-to-all liquidity available to our clients.”
Electronifie and TruMid did not immediately return requests for comment.