TradingScreen has become the latest entrant
in the competitive fixed income electronic trading space, launching what it
calls the first “buy-side designed” trading platform for corporate bonds.
The technology specialist has been working
with a group of large asset managers to develop TradeCross, which will provide
trading across the credit market.
TradeCross is based upon the technology of
TradingScreen’s Galaxy multilateral trading facilitity and will enable firms to
trade confidentially with other market participants. It aims to reduce market
impact, particularly during times of market stress.
The firm said the new trading platform is a
response to a liquidity crisis currently facing the fixed income market as
sell-side institutions that have traditionally provided liquidity to
institutional investors have withdrawn.
“Fixed income is facing tremendous odds in
its core trading infrastructure: all-time high issuance, creation of new
emerging markets, evaporating liquidity, scarce intermediating capital, lack of
solid electronic infrastructure, an outdated trading model, and absence of
definitive best execution methodology,” explained Philippe Buhannic, CEO of
“All of these factors make the Fixed Income
portfolio management and trading seriously limited compared to the
sophistication of other assets classes that have embraced change earlier.”
Nordea Investment Management is among the
buy-side firms that have worked with TradingScreen to develop TradeCross, and
the initiative has been chaired by its head of fixed income trading, Brett
Like many buy-siders, we are researching
additional channels to complement the current coverage model in order to locate
and execute trades efficiently,” said Chappell.
“The TradeCross approach is innovative and
makes it a viable partner for our needs.”
The platform will be officially launched at
TradingScreen’s fixed income forum in Paris on 19 November.
TradeCross is one a number of new trading
platforms targeting the fixed income space at present. Recently, BondCube,
which is offering an all-to-all trading model for bonds, received regulatory
approval to launch its platform from the UK’s Financial Conduct Authority.
Additionally, Liquidnet plans to launch fixed income trading in Europe next
year based on its blotter scrubbing technology following its acquisition of
trading platform Vega-Chi earlier this year.