Algomi, the network company providing information-matching solutions for the optimization of fixed income liquidity, today announced that the company will acquire and distribute the award-winning ALFA product created and developed by AllianceBernstein (AB).
ALFA (Automated Liquidity Filtering & Analytics) was developed as an in-house liquidity tool by AB. It provides cross-market information on liquidity and trade intent in order to give the buy-side a real-time view of the entire bond market including government bonds, investment grade, high yield, emerging market, municipal debt, and structured credit.
AB selected Algomi in a competitive search process to acquire and become the sole marketer of the product, now called Algomi ALFA. It will be sold to fund managers across the buy-side, allowing them to consume data from electronic venues, messaging platforms and direct dealer inventory feeds. Algomi’s focus on data technology solutions remains unchanged and was a key factor in AB’s selection process, further emphasizing Algomi’s agnostic stance on mode of execution channel. .
To protect individual client data integrity and ownership, ALFA clients will procure and own their own hardware via an approved cloud provider and Algomi will then install and deploy the ALFA software thereby maintaining Algomi's role as a pure software vendor. As with all Algomi solutions, clients own their data and Algomi has no access to the data.
Algomi has acquired the intellectual property and technology behind ALFA as well as the brand name. AllianceBernstein is also taking an undisclosed minority stake in the company and a seat on the Algomi board of directors.
ALFA solves several problems in today’s fragmented fixed income markets. The platform offers benefits to the buy-side, including:
· Aggregating the entire market landscape into ONE screen, to alert buy-side users of liquidity opportunities.
· More informed decision making through capturing a range of “Liquidity Signals”
· Helping traders determine not only whether to buy or sell a security, but also when and what mode of execution.
· Speed & Efficiency – cut the required time to fund a new trading mandate from weeks to days, and allowing more rapid repositioning of portfolios.
· Optimization of bond selection – can be better timed as a result of signals obtained through ALFA
· Providing evidence for Best Execution and TCA – enhanced process through better data, and proof that trade was timed correctly
Algomi ALFA will be hosted on an approved cloud with secure and unique instances for each customer. This is consistent with the delivery approach of Algomi’s sell-side Big-Data Information Processing Engine, known as Synchronicity, which allows them to develop a data relationship with clients via API or GUI based on bank preference.
Stu Taylor, Algomi CEO said, “The buy-side community has to navigate an increasing variety of liquidity channels yet preserve their trading and data integrity. They must remain instantly and continuously aware of relevant trading opportunities in the market to achieve Best Execution. Uniquely, Algomi ALFA acts as a conduit for all market participants including electronic platforms, data providers, sell-side firms and the buy-side in a way that enriches the interaction between these participants. Market timing is everything.”