08 Jun

Weekly Roundup - Market Connectivity and Liquidity Aggregation

Earlier this week, Shanny Basar wrote an interesting article for Markets Media on Liquidity Aggregation. The piece covered AxeTrading receiving a strategic investment, and Algomi distributing AllianceBernstein's ALFA product, which provides an aggregated picture of bond liquidity signals across multiple venues.

Congratulations to AxeTrading. This investment confirms our position that there is significant demand for technology that helps to navigate this fragmented market.

Illuminate Financial has invested €2m in AxeTrading, a platform which aggregates bond liquidity. AxeTrading provides banks, broker dealers and buy-side firms with a picture of Fixed Income liquidity including axes, runs and quotes across electronic venues, messaging platforms and voice channels as well as tools which support best execution and regulatory reporting.

Last month Algomi said it would acquire and distribute AllianceBernstein’s Automated Liquidity Filtering and Analytics (ALFA) to provide an aggregated picture of bond liquidity signals across multiple electronic venues, message platforms and direct dealer inventories.

Brad Bailey, research director at Celent, told Markets Media that for most fixed income asset managers, the markets have become more challenging and there are a growing set of technology tools that can help them access disparate liquidity across different parts of the fixed income markets.

The complete article also discusses further automation in the market, as ICE and LSE buy bond indexes. These indexes are highly valued by automated traders, using the digital information to enable and refine their trading algos.

A recommended read -