Data and analytics services provider Overbond has adopted Clearstream’s Bond Liquidity Data product, following an agreement with Deutsche Börse Market Data + Services (MD+S).
The companies aim to facilitate ‘better informed fixed-income trading in the EU’, they say.
Clearstream’s recently launched product provides market insights on instrument liquidity and trading activity in the fixed-income trading space. It was developed in response to data gaps and a lack of transparency in the sector, which leaves bond desks to aggregate incomplete data sources across the market.
Clearstream Bond Liquidity Data provides fixed-income transaction data from the firm’s 170 million annual transactions at a settlement level, ‘significantly supplementing’ data gathered from electronic platforms, Overbond says.
Overbond uses AI and cloud-based processing to aggregate data into executable prices and liquidity measures, using six months of historical data to generate pre-trade pricing and liquidity analytics.
By creating a fixed-income trading data set with Clearstream’s data provision, Overbond will be able to improve its liquidity scoring, risk tiering and margin modelling, it says.
Vuk Magdelinic, CEO of Overbond, says: “Complete and accurate data is a foundational tool for achieving consistent profitability in the bond markets. Incorporating Clearstream data into the training set for Overbond AI is a game-changer. It allows us to create a great tool for traders of European debt and enables them to automate up to 40 per cent of their trades using Overbond,”
Guido Wille, head of the Eurobonds business at Clearstream, adds: “Being at the heart of the Eurobond market, Europe’s largest securities market, it is Clearstream’s mission to increase transparency and therefore efficiency for all participants. This partnership is a great step on this journey, providing the market with comprehensive, up-to-date and high-quality bond settlement data.”
