The fixed-income trading platform Bondcube has gone live in Europe and the US, including full match, negotiation and trading functionalities for all kinds of bond trading.
Bondcube collates indications of interest from buy- and sell-side participants, matching buy-side and buy-side participants anonymously to cross through an intermediary. Buy-side and sell-side firms are matched to trade on a disclosed-identity basis.
Participants upload their indications of interest, indicating a security, direction, and minimum and maximum trading sixe, without specifying price or spreads. Indications remain anonymous and invisible on the platform until a match is found, and then only the participants involved are notified and eligible to begin negotiation.
Bondcube CEO Paul Reynolds said: “We started two years ago with the unique and innovative concept that the buy-side has vast amounts of liquidity that [request for quotation] has failed to execute and no one can see that liquidity.”
“Our very supportive first adopters have already proven our concept works at a level that exceeds our expectations. We have taken that concept further now by enabling website visitors to load their lists of securities and receive email alerts when the platform has an indication of interest in one of them.”
Deutsche Börse AG holds a 30 percent stake in Bondcube. Martin Reck, managing director of Deutsche Börse Cash Market, said: “We congratulate Bondcube for this milestone and wish the market every success.”
He added: “[Deutsche Börse’s stake in Bondcube] also ensures that we are well positioned in the ever-changing corporate bonds market.”
Trades will be facilitated by the FX, Rates and Credit Execution Services unit of UBS Investment Bank.
