The fixed-income trading platform, Bondcube has been granted approval by the UK Financial Conduct Authority to operate in 31 countries throughout Europe, with immediate effect.
Bondcube is designed to help solve the liquidity problem in large and illiquid bond trades, and will now become accessible for more investors to use.
The service uses indications of interest to minimise market, uses dark matching to find the other side of the trade, and uses historic orders to find matches in infrequently traded bonds.
It will provide users with an alternative to the existing infrastructure in which the buy-side issues a request-for-quotation to the sell-side trader.
“With Europe-wide ratification of our FCA approval, we will be positioned to support the vision of a borderless European market,” said CEO of Bondcube, Paul Reynolds.
“Our status will enable a broader range of sell and buy-side firms to connect to our platform.”
He added: “As a rigorously regulated trading platform, we have made considerable investment in technology to ensure transparent risk management and market surveillance whilst providing an alternative route to previously untapped liquidity.”
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