Algomi are key players in the bond trading market without being traders themselves. They provide various tools that assist in opening up the market by helping traders find bond liquidity. The financial market has been changing and participants are developing to keep up.
Let’s look at some of the key terms and acronyms that are currently relevant when thinking about Algomi, investment and bond trading. Even if you are already familiar with them, getting back to basics allows us to see the astuteness of Algomi’s understanding of the problems and the solutions. They have made key partnerships within the financial world which will ultimately lead to greater market opportunities for many.
What is Liquidity?
As the name suggests, liquidity is about the movement of the market. The speed and ease with which assets can be bought and sold is the key indicator of liquidity.
In order to enjoy liquidity, the players in the marketplace have to be able to see and act on opportunities. In a web as large and complex as the bond trading market, this is easier said than done. This is why Algomi have created Honeycomb. This software allows traders to crunch data in order to reveal potential investment opportunities. They can see the best firms to talk to in order to close a deal.
What is Euronext?
Euronext is a stock exchange that covers a substantial portion of Europe, crossing borders and creating the largest continental market. They had a temporary partnership with the New York Stock Exchange but now exist as a stand alone company again. They offer a number of financial exchange products including equities, exchange-traded funds, warrants and certificates, bonds, derivatives, commodities and indices.
What is an MTF?
MTF stands for multilateral trading facility. This is when a market is created to allow the exchange of financial instruments. It offers traders the opportunity to trade in different kinds of assets than those traditionally supported by the big exchanges.
How is this relevant to Algomi? In late 2016, we made a strategic partnership with Euronext in order to create a multilateral trading facility in the pan-European market. A company like Euronext needs to team up with a software engine in order to create their MTF and they have chosen Algomi.