TradingScreen Launches Buy-side Designed Crossing Platform For Fixed Income Corporate Bonds

  • Infrastructure
  • 16.07.2015 01:00 am

TradingScreen, the leading independent provider of electronic trading solutions, and a group of 15 of the largest long-only asset managers in Europe have launched TradeCross,the first buy side-designed crossing platform for fixed income corporate bonds.

 With the support and collaboration of these asset managers, TradeCross enables participants to uncover and unlock hidden liquidity from buy-side inventories along with other new sources of liquidity to complement the traditional trading approach for credit products.

TradeCross covers all segments of the credit market—investment grade, emerging markets, high yield—and offers buy-side traders the ability to anonymously trade blocks while respecting their sell-side relationships and STP processes. The software is currently being deployed and is already installed at several firms.

"The TradeCross initiative is unique as it is built with scalability and the needs of the buy-side in mind," said Brett Chappell, Head of Fixed Income Trading at Nordea Investment Management. "We hope that this easy-to-use and integrated platform, focusing on the needs of the asset management community, will allow it to become a main driver in setting the standard for fixed income trading in the future."

The platform was designed by the TradeCross committee with a simple yet powerful trading protocol in mind—to meet buy-side traders' needs.

"PGGM is one of the early adopters of the TradeCross initiative," says Patrick Fleur, PGGM's Head of Trading. "PGGM believes TradeCross represents a step toward a more transparent and efficient market with better liquidity, leading to lower costs for our clients. It should, therefore, contribute to a more sustainable financial system since it is no longer using the increasingly scarce balance sheet of investment banks. This is beneficial to our clients along with pension fund participants.''

Another 40 asset managers have pledged their commitment to participate in Phase II, which will begin shortly after the launch.

"A number of initiatives have been emerging to answer the liquidity issue that has developed in the credit markets. The TradeCross system is innovative, buy-side driven, and addresses the key requirements of large asset managers exposed to size issues and significant market impact risks," commented Laurent Albert, Head of Global Trading at Natixis Asset Management Finance. "We welcome new tools like this that make the markets more efficient and that will unearth new liquidity for the community as a whole."

"The credit market has faced more challenges in the past five years than at any other time, with a very high growth of new issuance and a drastic reduction of the intermediation capital committed to liquidity. Today, new tools are necessary for the buy-side trader in order to address this harsh rebuild of the market, and TradingScreen's innovative record positions us well to resolve these challenges for banks, buy-sides, and exchanges alike," said Philippe Buhannic, CEO of TradingScreen.

"We are delighted to support the buy-side's efforts toward more efficient block trading in corporate bonds and are encouraged by the very positive feedback on the approach from the buy-side community. We will continue to commit the resources to make TradeCross the best place to manage liquidity."

Integrated into TradingScreen's award-winning EMS, the platform has been met with enthusiastic support.

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