Algomi, a fixed income technology provider, has inked a new agreement with global asset management firm AllianceBernstein, which will see the integration of its ALFA fixed income liquidity and analytics tool, per a group statement.
AllianceBernstein presently deploys a wide range of analytics solutions across multiple asset classes. Its ALFA (Automated Liquidity Filtering & Analytics) was developed as an in-house liquidity tool, which helps provide cross-market information on liquidity and trade intent.
As such, the utility was designed to provide buy-side market participants with a real-time view of the overall bond market, including government bonds, investment grade, high yield, emerging market, municipal debt, and structured credit.
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The group had been in the market for a marketer and distributer of the ALFA utility, a function that Algomi will execute per its latest agreement. The tool will be pitched to fund managers across the buy-side, which will allow them to consume data from electronic venues, messaging platforms and direct dealer inventory feeds.
Algomi seems well versed in this area, given the group’s emphasis on data technology solutions. To prevent any issues in individual client data integrity and ownership however, ALFA clients will also procure and own its own hardware through an approved cloud provider, while Algomi will install and deploy the ALFA software to help maintaining its role as a pure software vendor.
Moreover, Algomi has acquired the intellectual property and technology behind ALFA as well as the brand name. Consequently, AllianceBernstein will also taking an undisclosed minority stake in the company and a seat on the Algomi board of directors.
A little over a month ago Algomi made headlines with an agreement with Euronext. The agreement saw Euronext invest over $10 million in its minority stake of Algomi, helping support trader access to Algomi’s bond information network. The investment was important for corporate bond traders who will be able to not only garner access Algomi’s bond information network, but also to manage their risk on a more efficient basis.