Algomi suggests partnering with Neptune

Algomi's CEO, Stu Taylor, may seek a partnership with Neptune in an effort to address liquidity challenges and improve connectivity in bond markets. Taylor wishes to connect EMS systems with Neptune, working to expand its bond trading network and aggregate liquidity pools.

Algomi’s chief executive officer Stu Taylor expressed interest in working with fixed income initiative Neptune to improve connectivity in bond markets.

Taylor made the comments to Neptune co-founder Sassan Danesh during a panel addressing liquidity challenges in the fragmented bond market.

He said: “We’re interested in working with the Neptune group to connect with EMS systems, which makes sense to me.”

Danesh nodded having heard Taylor’s suggestion, and told delegates on the panel: “The area we are involved in is looking at that pre-trade data in order to locate counterparties for those looking to trade.”

He continued: “There are many liquidity pools and we need to figure out how to aggregate them and make that the focus.”

Moderator of the panel and chief executive at ViableMKTS Chris White added: “The solutions most dominant moving forward will be those which practice this religion with other solutions.”

The theme at this year’s Fixed Income Leaders Summit has been about improving connectivity between platforms and initiatives to benefit the overall network for bond trading.

Erik Tumasz, who heads up fixed income trading technology at Wellington Management Company, said his firm currently have 36 FIX connections.

He explained the cost is large but gaining the liquidity takes technological resources – “creating a standard way to trade bonds would make life easier.”

Nordea Asset Management’s head of fixed income trading Brett Chappell added that Nordea connect to approximately 10 platforms, and that it’s “a lot of data to assimilate.”