Recently, European company Euronext made a $10 million investment in Algomi. News of our revolutionary programs built for fixed market trading must have spread to Euronext, giving them the idea to develop a MTF (Multilateral Trading Facility) in conjunction with us here at Algomi.
Electronic bond trading is an opportunity that we all want to be involved in, but not many have overcome the transition from traditional, voice based trades. Many traders also prefer the older, more human trading via the telephone.
The recent shift in ideas are a result of events like Donald Trump´s presidential victory. Unsurprisingly, Trump´s victory wiped $1 trillion off the market by November 14th, bringing the estimated market down to $86 trillion from $87 trillion. In an effort to diversify and survive in a unstable economic climate, companies are thinking of new ways to unlock value in their trades.
Euronext´s aim with Algomi is to create a new MTF to create a centralised marketplace for pan-European corporate bond trading.
What is a multilateral trading facility?
An MTF is a self-regulated financial trading venue that is considered an alternative to the traditional stock exchange, which trades in securities. In short, it connects multiple traders in an alternative way, offering different rules and different trade opportunities than traditional stock trading.
Euronext´s choice in Algomi
Our track record has so far been excellent, winning multiple awards for innovation, even in the early stages of our inception. Algomi will supply Euronext with a fully internally developed exchange-grade bond matching solution to give the functionality that you need for algorithmic smart-matching to create and auction between dealers.
The basic idea is that if a bank is not able to match an order from a buy-side trader, it will get sent to the separate inter-dealer exchange where a more collaborative approach can find the other portion of the deal.
Algomi´s CTO, Usman Khan says: “Any bank that uses Synchronicity will automatically, once they have a contractual agreement in place with the Euronext MTF, be able to access that exchange very quickly.”
Together, Euronext and Algomi are building a better future for themselves and the trading community.
For more Algomi news and Euronext news, check back soon.