Protecting your pre-trade privacy is vital to ensuring that you are the first to make the key trade. Telegraphing your movements around the industry means that you will suddenly have to share the field with others who are jostling for space. However, communication is key to making a trade in the first place, so what can you do?
On top of this issue, compliance gets more complex all the time and you need to be able to meet your obligations to regulators when required. How do you keep all the data required to secure your information flow while keeping your cards close to your chest?
Finally, once you have identified the right trade, ensured compliance and are ready to go, what route do you take to market?
Fortunately, there is good news. Algomi and Euronext have joined forces to offer you the right balance of privacy, transparency and an established, regulated exchange group in which to trade. Euronext invested $10 million in Algomi earlier this year to fund a striking vision for the future.
The old way
Historically, trading relied upon instinct, data crunching and making the right calls. Voice trades mean interaction and that means tipping your hand. Once you do that, there is no way to guarantee your privacy. This could mean you are suddenly in a foot race where everyone is fuelled by the hard work you put in to identify the trade.
Communication is a necessary and permanent part of trading. The process needs to be refined rather than supplanted. That’s where Algomi comes in.
The new way
Honeycomb, Algomi’s information platform, is designed to create liquidity in the market by identifying possible trades. It is not designed to replace traders or the voice trade, it is design to assist them in a way that will take the industry to the next level.
Honeycomb allows you to secure a likely trade opportunity by analysing data from over 240 buy-side clients and 17 banks. You can look around, send queries and get all the data you need before you make the first call and expose your movements.
Finally, Euronext provide the environment in which to make the trade. Watch this space for more Fintech Web News on these exciting developments.