LONDON /PRNewswire/ -- Algomi, the network company providing information-matching solutions for the optimisation of fixed income liquidity, today announced its 100th buy-side firm has committed to its Honeycomb network globally.
Algomi's Honeycomb Network allows investment firms to see which dealer is best placed to facilitate illiquid corporate bond trades without disturbing the markets and having the price move against them. Algomi is continuing to add asset management, pension fund, sovereign wealth fund, endowment and hedge fund clients from offices inNew York, London and Hong Kong, and client support and sales in Chicago, San Francisco, and Boston.
More firms are coming online each week. Alongside the 100 buy-side firms, a swift increase in the 50 buy-side firms that had signed on by May 2015, 11 major banks have either installed or installing the Honeycomb network. An additional 120 buy-side firms are in contract negotiations.
"The rapid uptake of the buy-side to the Honeycomb network demonstrates that there is an increasing need for more efficiency in voice corporate bond trading," said Algomi co-founder and CEO Stu Taylor. "Doubling the number of firms on the Honeycomb network in such a short period of time is indicative of the liquidity problems that global credit markets face, and is testament to our robust sales process and technology teams that are onboarding the firms, enabling the buy-side to access the information that helps make illiquid trades happen."
The company made the Honeycomb network available to the sell-side in the spring of 2014, and buy-side firms started to join towards the end of the year. Algomi's growth stems from changing market conditions in the fixed income market, driven by regulation stipulating that banks are now unable to warehouse the risk associated with illiquid bonds on their balance sheets.
ABOUT ALGOMI LTD
Algomi connects fixed income professionals, empowering them to make better trading relationships, in the ever-changing landscape of capital, leverage and liquidity requirements. By harnessing the relationships between Fixed Income salespeople, traders and their clients, the Algomi Honeycomb suite of scalable software greatly increases the opportunities and velocity in large and illiquid voice trades between banks and buy side investors.
For banks, Algomi creates a real time internal sales and trading bond information network using their own data to identify the best trade opportunities and enables real-time collaborations between sales, traders and investors. This delivers more effective execution of less liquid bonds and integrates with Algomi Honeycomb. For investor firms, Algomi Honeycomb becomes their eyes and ears on the world's trading floors. Providing the data and market insight vital to select the right dealers and the right timing of the trade to ensure maximum likelihood of execution. The investor is able to deal in size, achieve Best Execution, and remain discrete in the market while banks get to use their large distribution network. Execution is voice based between investor and bank, as is appropriate for large sensitive trades.
Algomi was founded in 2012 by Stu Taylor (Former Global Head of Matched Principal Trading and creator of PIN-FI at UBS), Usman Khan and Robert Howes (Founders of CAPXD), and Michael Schmidt (Former Head of European Credit Trading and IB Board Member at UBS). Algomi is backed by investment from Lakestar, and an exceptional panel of Strategic Advisors. Algomi has over 140 employees with offices in New York, London and Hong Kong, and client support and sales in Chicago, San Francisco, and Boston. [email protected]
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