BNY Mellon and HSBC sign up to Algomi’s Honeycomb
18 October 2018 New York
Image: Shutterstock
BNY Mellon and HSBC have both signed up to use Algomi’s Honeycomb network in a bid to boost client’s access to fixed income liquidity.
The collaboration will allow both BNY Mellon and HSBC clients the ability to make select holdings information available anonymously.
According to Algomi, custody clients will have the opportunity to make their bond holdings in custody available on a non-disclosed basis.
Counterparties on the network will be able to query these bond holdings, alerting the custody holder and giving them the ability to instruct their dealer to trade on their behalf, while protecting the client’s identity.
Research conducted by the Financial Conduct Authority showed that the number of corporate bond trades, resulting from orders and request for quotes, has declined from around 65 percent before the financial crisis to 20 to 25 percent in 2017.
BNY Mellon and HSBC expect to roll out the initiative to clients in early 2018.
Stu Taylor, CEO of Algomi, said: “The ability for dealers to tap the databases of large global custodians on behalf of their buy-side clients, to find a buyer or seller for a specific bond in real-time without compromising data privacy is a breakthrough development for fixed income markets.”
Taylor added: “Working with two of the largest custodian banks will open up new avenues for price discovery and alert market participants to relevant signal data that indicates market activity, price and depth.”
The collaboration will allow both BNY Mellon and HSBC clients the ability to make select holdings information available anonymously.
According to Algomi, custody clients will have the opportunity to make their bond holdings in custody available on a non-disclosed basis.
Counterparties on the network will be able to query these bond holdings, alerting the custody holder and giving them the ability to instruct their dealer to trade on their behalf, while protecting the client’s identity.
Research conducted by the Financial Conduct Authority showed that the number of corporate bond trades, resulting from orders and request for quotes, has declined from around 65 percent before the financial crisis to 20 to 25 percent in 2017.
BNY Mellon and HSBC expect to roll out the initiative to clients in early 2018.
Stu Taylor, CEO of Algomi, said: “The ability for dealers to tap the databases of large global custodians on behalf of their buy-side clients, to find a buyer or seller for a specific bond in real-time without compromising data privacy is a breakthrough development for fixed income markets.”
Taylor added: “Working with two of the largest custodian banks will open up new avenues for price discovery and alert market participants to relevant signal data that indicates market activity, price and depth.”
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