Neptune Networks Launched to Help Erode Connectivity Costs For Bond Market

The new launch follows 18 months of collaboration, pushing Neptune’s ambitions to help streamline its open standard utility.

Neptune, an open standards network utility for the fixed income market, has launched a new business entity and component of its company, Neptune Networks Ltd., to run its open standard utility, per a recent Neptune statement.

Neptune Networks Ltd. will see an aggregation of banks and asset managers, part of a comprehensive board that will look to foster a joint buy-side and sell-side governance. The launch of the new entity is the culmination of eighteen months of collaboration as well as Neptune’s ambitions to help streamline its open standard utility.

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At the present, there are a total of seventeen dealers that are currently integrated within system distributing, boasting approximately 13,000 structured pre-trade indications across 8,500 ISINs to their clients. Neptune’s existing network initially garnered a focus on European investment grade and high yield corporate bonds though has since augmented in scope and scale to include Emerging Markets (EM) and covered bonds.

Neptune’s system was engineered to utilize FIX standard in a bid to help mitigate connectivity costs. More specifically, this helps allow banks and investors to exchange controlled and targeted, real-time axe and inventory data.

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The formation of Neptune Networks is important as it will also help steer asset managers into connecting to the sell-side via any combination of the Neptune GUI. Consequently, this versatility will aim to result in higher quality pre-trade indications via Neptune’s services.

According to Tim Morbelli, Vice President and Senior Credit Trader at Alliance Bernstein, in a recent statement on the formation of Neptune: “The launch of Neptune is a great step towards increasing transparency within the dealer community. By having a direct feed to consume multiple dealer axes in an electronic format is not only cost effective but makes our process more efficient.”

“The incorporation of Neptune is the culmination of 18-months work with our consortium members across business, finance, legal, technology and strategy,” reiterated Grant Wilson, a Managing Partner at Etrading Software and interim CEO of Neptune in an accompanying statement.

“We are pleased to have reached this milestone resulting in the formation of Neptune Networks Ltd. Our sponsors bring tremendous experience and a deep understanding of the challenges and opportunities facing the financial markets and we are delighted to cement the relationship with these market leading institutions and continue to drive the Neptune strategy forward.”

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