Launched for real trading in April, Bondcube operates an electronic matching platform aiming to provide more optimal pricing and liquidity for fixed income trades. Bondcube allows both sell-side and buy-side participants to both place indications of interest (IOI) as well as match IOIs.
As an all-to-all platform, the product allows for direct buy-side to buy-side transactions to take place. To facilitate these trades, Bondcube partneres with bank intermediaries that provide risk-free settlement and clearing between buy-side participants. Upon launching, UBS was the platform’s initial intermediary for buy-side to buy-side trades.
Expanding settlement services, Bondcube has announced that independent broker, ITG, has been appointed as a new US intermediary for buy-side to buy-side trades. According to Bondcube, the inclusion of ITG will also “increase the probability of a match for clients of both firms [ITG and Bondcube] by allowing ITG clients access to the additional Bondcube liquidity and participants and vice-versa.”
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As an open platform Bondcube users benefit from increases of participants of the product due to additional demand and liquidity for trades that becomes available. In addition, as an electronic marketplace, Bondcube is able to more effecienctly scale the inclusion of new participants compared to voice driven brokering services.
We see this partnership as an exciting phase of our growth in building out the new global pool of buy-side Fixed Income liquidity – Paul Reynolds
On the news, Frank DiMarco, Head of Fixed Income Electronic Trading at ITG, stated, “We are delighted to connect to Bondcube as a US intermediary. It means our clients can now access an additional pool of liquidity to improve their fixed income execution efficiency.”
Paul Reynolds, Bondcube CEO, added, “With a complimentary client base, we see this partnership as an exciting phase of our growth in building out the new global pool of buy-side Fixed Income liquidity. We will be making further announcements about high quality partners such as ITG”.