S&P Global (NYSE: SPGI) has invested an unknown sum to acquire a minority stake in Algomi and also inked a partnership agreement with the London fintech startup, which will see the provider of ratings, benchmarks and analytics leverage Algomi’s bond trading technology to push into new markets.
The two parties have agreed to a long-term commercial relationship which will result in product and data collaboration between Algomi and S&P Global’s market intelligence division, which provides multi-asset class research data and insights. They also will collaborate on future product development to bring new and innovative capabilities to market.
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Launched in 2012 by former UBS bankers, Algomi is a fintech company with offices in New York, Hong Kong and London. The company runs an information-matching platform that helps investors solve the liquidity problems often seen in bond markets with its approach to big data. Its Honeycomb Network allows investors to see which dealer is best placed to make corporate bond trades happen without disturbing the markets and having the price move against them.
The startup launched its solution to the sell-side in 2014 and buy-side firms started to join the network towards the end of the year.
Commenting on this, Douglas L. Peterson, President and CEO of S&P Global, said: “We think very highly of Algomi and are excited about the opportunity to bring our data, technologies and deep analytics into additional market segments. By partnering with Algomi, we will further leverage the power of big data and artificial intelligence to create even more opportunities to deliver value to our and Algomi’s customers.”
Stu Taylor, Algomi co-founder and CEO, added: “We are delighted that S&P Global has agreed to work with us and share their phenomenal experience in developing our products and managing critical market data. We are also very pleased they have seen the significant potential of Algomi and how strongly we are growing to make an investment in the firm.”