Neptune invites 40 new buy-side firms to join the platform

Project Neptune, the bond market utility backed by a group of banks and asset managers to boost falling liquidity, has invited 40 new buy-side firms to join the platform. The not-for-profit initiative, which has seen significant growth since its launch last August, looks at ways to link the disparate market to boost bond market liquidity. Grant Wilson, who is part of Neptune's leadership committee said MiFID II will result in an explosion of data in a market where data costs are already too high; and costs will increase even further unless a standardised, commoditised approached is adopted. Neptune has seen significant growth since its launch last August, currently covering 4,000 securities across 16 countries.

Bond trading initiative Project Neptune is predicting a rise in daily inventory by the end of January after it invited 40 new buy-side partners to join its platform.

In an interview with The Trade, the initiative’s senior management said they have earmarked the dollar desk and emerging market operations as priority areas for expansion in the coming months.

ETrading software’s managing partner Grant Wilson – who is part of the leadership committee – confirmed the expansion plans.

He added: Mifid II will lead to an explosion of data in the market. Data costs are currently too high and this will continue to be an issue.

“We will see these costs increase even further following the implementation of Mifid II if a standardised, commoditised approach is not adopted.”

Neptune’s existing client base currently consists of 60% global houses with European base; 35% global houses with a U.S base; 5% global houses with an Asian base.

Since its launch in August Neptune has seen significant growth, according to Wilson.

He continued: “To have as many buy and sell side connected is an amazing achievement in such a short space of time [9 months].”

He said that the initiative now covers more than 4,000 securities across 16 currencies.

Launched in August 2015, the bond industry and not-for-profit initiative looks at ways to link up the disparate market to boost liquidity in the market. Neptune is managed by Etrading software and is supported by financial institutions like Goldman Sachs and Morgan Stanley.

Liquidity and cost of connectivity are often highlighted as one of the main issues preventing the widespread adoption of new all-to-all trading facilities.