BNY Mellon and HSBC join forces with Algomi for bond liquidity

Partnership means dealers will be able to tap database of custodians on behalf of buy-side clients.

BNY Mellon and HSBC have signed up to Algomi’s Honeycomb network in a bid to boost their respective clients’ access to fixed income liquidity.

Custody clients of the banks will be able to make their bond holdings in custody available on a non-disclosed basis through a system powered by the Honeycomb network.

Counterparties on the network will then be able to query those bond holdings through BNY Mellon or HSBC affiliated broker dealer trading desks.

The custody holder is alerted and given the ability to instruct their dealer to trade on their behalf while protecting the client’s identity.

Stu Taylor described the ability for dealers to tap the databases of large global custodian on behalf of buy-side clients is a “breakthrough development for fixed income markets”.

He 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.”

BNY Mellon and HSBC are expected to roll out the initiative to clients early next year and potentially with other custodians.