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Importance of Information for Corporate Bond Investors Confirmed by New StudyAlgomi, the network company providing information-matching solutions for the optimization of fixed income liquidity, today released comments based on recent research from Greenwich Associates on fixed income trading. The Greenwich Associates report, "Corporate Bond Best Execution: More Art Than Science," which was released last week, found that institutional investors are increasingly concerned with defining best execution in fixed income. More information is now required by buy-side firms, as traders must now provide documentation on every step of their decision-making process. The lead author on the study, Greenwich Associates Head of Market Structure and Technology Research Kevin McPartland, said the report shows that "best execution is not always equivalent to the best price." For Algomi, the research reiterates the firm's belief in rethinking the way information across the Fixed Income markets is captured, cataloged and analyzed. Algomi's Honeycomb network greatly increases the opportunities and velocity in large and illiquid voice trades between banks and institutional investors. It can also indicate best execution, by showing that trading partners were selected based on the amount of relevant information that each broker hold on each security. "This Greenwich Associates research confirms our belief that the key currency is today's fixed income markets is information," said Steve Gallagher, head of Algomi's U.S. office. "By working with Algomi, buy-side institutions can ensure they are capturing their decision-making process so it can be analyzed by fellow traders, compliance and even regulatory bodies to provide necessary proof on best execution." The current changes in the fixed income market have been favorable to Algomi, which has grown rapidly since its founding in 2012 and entering the States in 2013. The firm is live or being installed in 9 banks and currently has more than 30 buy-side investor firms on-board, with a targt to surpass 100 firms by mid-year. The firm just announced plans to triple in size in the States with the development of a new permanent American headquarters with space for up to 75 employees.
ABOUT ALGOMI LTD For banks, Algomi Honeycomb creates both a real-time internal network of salespeople and traders, and a discrete dynamic connection to their universe of investor clients and interbank parties, using their own data, external aggregators and other sources. Honeycomb enables banks to identify the best trade opportunities and to generate efficient collaboration between traders, salespeople and their clients. For portfolio managers, investor dealers and compliance teams, Honeycomb provides the data and market insight vital to selecting the right banks and the right time to trade. The investor is able to deal in size, seek best execution, and remain discrete in the market while the banks 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). Michael Schmidt (Former Head of European Credit Trading and IB Board Member at UBS) joined as Chairman in 2013. Backed by investment from Lakestar and an exceptional panel of Strategic Advisors, the Algomi team has grown to 90 employees in offices in London and New York.
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