Euronext and Algomi Look to Deepen Bond Liquidity – Markets Media
November 4, 2016 \ 6 Comments
Full Article: Markets Media
Dealers will be able to access the trading interface either directly through their existing Algomi technology or their stand-alone systems. The MTF will use algorithmic smart matching processes to create an auction between dealers to improve liquidity and search for best execution.
Great job by Shanny Bassar in putting this story together and gathering views from some very well-respected experts in this area. To Brad Baily’s point, having an incumbent engage in a partnership with a technology solution is a signal to everyone that the technology does solve a problem. All of the experts that suggest that startups can’t compete should take notice. Paul Humphrey is a very bright guy who knows this space as well as anyone and having him on board provides not only credibility, but guidance and direction. This isn’t to suggest that it’s game, match and set for… Read more »
It’s great to see so much hard work being rewarded in the case of Algomi. This should now ensure their future (for 10Y!). What started as a very ambitious, independent platform now focuses on a well-placed turnkey technology solution, which Wolfman notes.
This combination is very interesting, with Algomi having had a difficult time generating paying customers for its traditional business of information processing. The concept makes a lot of sense although I believe it is at odds with Algomi’s originally stated goal of connecting, not trading. That said, it is hard to see $2.3mm going very far, and I hope Euronext is prepared to continue investing in the project. We have seen a bit of a shake out in this space with a handful of firms shutting the doors; it is natural that we will start to see consolidation and joint… Read more »
From the high level of information given, this is a nice validation of a piece of the technology Algomi has built. Euronext gets access to tech that is not core to its current matching trading technology, Algomi gets a partner with a hell of a lot of counterparty connectivity. 2mm is barely pocket change for Euronext, so this doesn’t strike me as a ringing endorsement. Also given this and their similar deal with SIX, is this part of the technology where the true value of Algomi lies. If so, how big is the market for the product, doesn’t seem very… Read more »
This article seems to confuse issues. This JV appears to be an IDB using dark pool fuzzy matching as its protocol. Which, if I am not mistaken, is identical to what SIX is running on the same Algomi technology. But the author then quotes ‘market experts’ on things such as; “..clients want tools and services to aggregate liquidity from all available sources, as well as flexible market structure models in order to ensure best execution and greater access to data”. ” ..the buyside needs to support new exchanges or exchange-like trading venues by taking on some of the market making… Read more »
Very interesting point on the SIX work that has been going on with Algomi and how this will be coexist. On the face of it being linked to both SIX (for some years) and then flipping into Euronext and JV’ing to launch a competing issue does not seem like very ethical business practice. Even having the comment in the press release (not Switzerland) points to recognized issues although anyone with a cursory knowledge of SIX offering knows that it was not Swiss bonds. The morality of the above aside as we all know business is business. What I still don’t… Read more »
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