Euroclear’s data and information services business has made a strategic investment in fixed income trading and technology specialist Algomi.
The post-trade services provider will gain access to Algomi’s bond liquidity matching system and data aggregation tool, alongside Euronext’s Synapse multilateral trading facility (MTF) for trading bonds.
Algomi explained that the investment will see Euroclear Information Solutions increase its trading opportunities and transaction volumes in illiquid fixed income securities, including corporate and government bonds, for its clients and the wider market.
“Our investment in Algomi is driven by client demand to access untapped liquidity pools,” said Peter Golder, CEO of Euroclear Information Services. “This venture represents an opportunity to transform our data into an asset to increase transparency and provide a substantial boost for global fixed income markets.”
Euroclear joins key market players as an investor in Algomi, including S&P Global, Euronext and AllianceBernstein, who took stakes in the company throughout 2017.
“In Euroclear, we have a partner who understands the value of information and the importance of improving liquidity in the fixed income market,” Algomi’s recently appointed CEO, Scott Eaton, added.
“Combined with earlier deals, this gives us a global platform to unlock previously untapped resources in bond market liquidity. We look forward to welcoming Euroclear to the Algomi board and to working closely with them as we further develop our market aggregation and data surveillance offering to our clients.”
Eaton was appointed CEO at Algomi last month following the departure of co-founder and former CEO, Stu Taylor. He joined Algomi from rival fixed income specialist MarketAxess, where he was chief operating officer.