Marex to Acquire Webb Traders as Banks Retreat From Equity Derivatives
Why Is Marex purchaseing a Market Maker?
Marex Group has agreed to acquire European equity derivatives market maker Webb Traders, deepening its involvement in market-making activities as banks continue to scale back capital-intensive trading businesses. The acquisition is intended to strengthen Marex’s equity derivatives operation by allowing the firm to hedge equity-linked structured products internally rather than relying on external counterparties.
Financial terms were not disclosed. Marex said the transaction is subject to regulatory approval and is expected to close in the second or third quarter of 2026.
Webb Traders operates from Amsterdam and Paris and focuses on single-stock options market making across European and U.S. mid- and large-cap equities. The firm runs a technology-led model built around automated pricing, quantitative research, and electronic venues.
Investor Takeaway
From Outsourced Hedging to Direct Risk Control
The deal reflects how equity derivatives markets have changed since the pandemic-era volatility cycles. Large banks, once dominant in single-stock options and structured products, have trimmed activity under tighter capital rules and stricter internal risk limits.
That retreat has left issuers of structured products increasingly dependent on a smaller group of specialist market makers to hedge client exposure. In volatile conditions, that dependence has translated into less predictable pricing and higher hedging costs.
People familiar with Marex’s business said the firm has historically relied on third parties to manage the delta, gamma, and volatility risks generated by structured equity products. Acquiring Webb Traders would bring those risk flows inside the group, allowing Marex to manage hedging directly rather than through external desks.
Ian Lowitt said the transaction would allow Marex to rely less on outside firms. “They have built an incredibly talented team supported by excellent technology,” he said. “They have a prudent approach to risk and have been profitable across a range of market environments, which, combined with the ability to internalise some hedging costs, will be beneficial to Marex.”
Technology-Led Market Making Gains Ground
Webb Traders’ footprint in Amsterdam and Paris reflects broader shifts in Europe’s equity derivatives landscape since Britain’s exit from the European Union. Amsterdam has become a key centre for electronic trading and options market making, while Paris hosts a dense network of structured product issuers and hedging desks.
Unlike traditional trade-side operations built around client coverage and balance-sheet scale, Webb Traders operates as a specialist liquidity provider. Its model relies on automated pricing, disciplined risk limits, and rapid responses to rather than directional trading.
That profile aligns with Marex’s broader approach as a facilitator of client activity rather than a firm built around proprietary risk-taking. One industry source familiar with both businesses said culture mattered as much as technology. “If you internalise hedging, you are effectively bringing market-making risk onto your own balance sheet,” the person said. “That only works if the controls and risk discipline are strong.”
Investor Takeaway
Part of a Wider Non-Bank Expansion
Marex’s move fits a broader pattern in derivatives markets, where non-bank intermediaries are combining distribution with in-house trading and technology to capture more of the economics. Volatility since 2020 has exposed the limits of agency-only models that depend entirely on external hedging partners.
The acquisition is unlikely to alter Marex’s overall risk profile in the near term, but it does show a readiness to commit capital more directly within its equity derivatives business. Regulatory review is expected to focus on system integration, surveillance, and capital treatment, though market participants said approval risks appear limited given the size of Webb Traders and Marex’s existing infrastructure.
Once completed, the deal is expected to allow Marex to offer tighter pricing and quicker execution on equity-linked products while keeping a larger share of profits that would otherwise be paid to third-party market makers.
As traditional banks continue to pull back from parts of , the acquisition highlights how non-bank firms are stepping in not just as intermediaries, but as active liquidity providers in their own right.
