Euronext has expanded its joint venture with fixed income technology provider, Algomi. The latest agreement will see Europe’s largest exchange investing over $10 million in its minority stake of Algomi, helping support trader access to Algomi’s bond information network, per a group statement.
In particular, the investment is important for corporate bond traders who will not only be able to garner access Algomi’s bond information network, but also be able to manage their respective risk on a more efficient basis. Traders will also be able to identify the most appropriate counterparty through the network’s framework.
The newly enhanced venture will be working in tandem with other regional exchanges with the fundamental aim of delivering more holistic market access. It will aim to promote similar efforts not just in Europe but in other locales such as North America via an Automated Trading System, as well as the Asia-Pacific (APAC) region.
Dealers will also be able to achieve access to the newly enhanced network of venues directly through their Algomi technology or existing systems. This is important as investor firms will be able to benefit from improved liquidity and best execution, whilst also maximizing the latitude of eligible trades through the minimization of potential information leaks.
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Moreover, Paul Humphrey, Head of Fixed Income, Rates & FX at Euronext, is also slated to join the Board of Directors of Algomi.
According to Stéphane Boujnah, CEO of Euronext, in a statement on the venture: “Algomi’s cutting edge technology, combined with Euronext’s established position in the market place, will enable us to further diversify our revenues and capture selected opportunities arising outside of Europe, whilst tackling the symptomatic illiquidity of global corporate bond markets in partnership with our clients.”
“This partnership with Algomi is central to our Fixed-income ambitions and our wider FICC diversification plans as part of our ‘Agility for Growth’ plan. As a strategic investor taking a board seat, we will be in a strong position to oversee the successful growth of the business, and consolidate future trading activity globally,” Boujnah added.
“The initiative will allow us to bring Algomi’s unique bond information network to new parts of the credit market, something which has been very positively received by our existing bank clients,” explained Stu Taylor, co-founder and CEO of Algomi.