New York-based Tradeweb Markets Inc., operator of electronic trading platforms, has made a strategic investment in and finalized a commercial partnership with digital mortgage exchange MAXEX. Financial terms of the transaction were not disclosed.
The collaboration is designed to broaden institutional access to the U.S. residential mortgage market, connecting Tradeweb’s global network of more than 3,000 clients to MAXEX’s nearly 400 mortgage lenders and over three dozen institutional investors.
MAXEX’s digital platform, built for the trading of residential whole loans, has facilitated sales to more than 250 private-label securitizations (PLS) and portfolio investors. Under the deal, MAXEX’s exchange and clearinghouse will be integrated with Tradeweb’s electronic trading, data and workflow systems.
The partnership also expands Tradeweb’s mortgage offerings beyond agency mortgage-backed securities (MBS) to include the to-be-announced (TBA) and specified pool markets, marking a broader footprint in the residential private credit space.
“Residential private credit represents a compelling next phase of that evolution as we continue to invest in core areas of organic growth for Tradeweb,” Troy Dixon, managing director and co-head of global markets at Tradeweb, said in a statement.
As part of the agreement, Dixon will join MAXEX’s board along with Marc Simpson, managing director and head of residential whole loan and secondary MBS trading at JPMorgan, which led a 2021 investment in MAXEX.
“MAXEX was built to address the structural inefficiencies that have long constrained the residential mortgage secondary market,” said Tom Pearce, CEO, chairman and co-founder of MAXEX. “Together, we intend to bring institutional-grade infrastructure, transparency, and liquidity to a core segment of private credit that underpins the U.S. financial system.”