The Gateway to Algorithmic and Automated Trading

Euronext and Algomi announce new corporate bond trading facility

First Published 3rd November 2016

Under a ten year strategic partnership agreement, Euronext and Algomi will form a Joint Venture Special Purpose Vehicle, capitalised by Euronext, with technology supplied by Algomi, to improve liquidity in European corporate bond trading.

Stéphane Boujnah, Euronext

Stéphane Boujnah, Euronext

Euronext has announced a 10 year partnership with Fixed Income technology provider Algomi to create a long-term joint-venture.

This JV, capitalised by Euronext for US$ 2.3 million, will deploy Algomi's technology to a new MTF owned and operated by Euronext. Dealers will be able to access the trading interface either directly through their existing Algomi technology or through their stand-alone systems. The platform will use algorithmic smart matching processes to create an auction between dealers to improve liquidity and search for best execution.

Strategic Rationale

Local and global bond markets comprise c.US$87 trillion2 in market value. The majority of trades, by value, are still completed on the phone which results in an opaque and fragmented market based on imperfect information.

There is limited data on buyers and sellers which results in low liquidity. Investors in these markets continue to struggle to find the right trading counter-party at the right time. This unique solution will link Euronext, the banks and investors in a collaborative network which creates a centralised market place. It will turn disparate data into relevant and structured information and increase trade opportunities in the pan-European corporate bond market.

This solution completes Algomi's Honeycomb bond network, that already connects asset managers and their dealers, by bringing the dealers together for the first time with the strength of the regulated federal model of Euronext.

Stéphane Boujnah, CEO of Euronext: "The creation of this platform will ultimately diversify Euronext's offering, with further key synergies in technology and market data to be explored jointly with Algomi. This initiative, alongside our broader ambitions in FICC, fits with Euronext's "Agility for Growth" strategy."