Euronext has made a $10 million strategic investment in bond technology provider, Algomi as part of its joint venture expansion.
The investment will see Algomi’s bond network made available to traders globally and allow them to exchange risk more efficiently by identifying appropriate counterparties.
Dealers will access the network of venues directly through Algomi’s technology or through existing systems.
The bilateral nature of the bond market means the majority of trades, by value, are still completed away from e-platforms. So, the market is characterised by opaque and fragmented information with fragile liquidity, Euronext explained.
“This initiative is designed to create a network of centralised information venues, turning disparate data into trade opportunities between counterparties yet maintaining the current client-to-dealer market structure.”
Paul Humphrey, head of fixed income, rates and FX at Euronext, will join the board at Algomi as part of the investment as the exchange looks to expand its presence in the fixed income space.
Stéphane Boujnah, CEO of Euronext, said Algomi’s ‘cutting-edge’ technology combined with Euronext’s position in the market, “will enable us to further diversify our revenues and capture selected opportunities arising outside of Europe.”
He added: “This partnership with Algomi is central to our Fixed-income ambitions and our wider FICC diversification plans as part of our ‘Agility for Growth’ plan.”