On Monday, Fixnetix, a market data telecommunications company and European provider of low latency market data, announced a deal with EuroMTS, a pan-European electronic trading platform for government and quasi-government Eurobenchmark bonds. Fixnetix will deliver EuroMTS fixed income data direct to financial firms over iX-Direct, its data on the wire delivery service.
Fixnetix’ low latency EuroMTS feed will enable financial firms to stream real time bond data, at high speed, direct into their automated trading systems, propelling complex trading strategies, says the firm.
Users will receive benchmark fixed income securities data from 15 government and quasi-government issuers including Austria, Belgium, Finland, France, Germany, Greece, Ireland, Italy, The Netherlands, Portugal, Spain, Depfa, the European Investment Bank (EIB), Freddie Mac and Kreditanstalt für Wiederaufbau (KFW).
“EuroMTS is committed to enhancing the liquidity, transparency and efficiency of the European bond markets and we see fixed income quickly following the automated trading path of the equities market which has well over a quarter of trading driven by algorithmic trading applications,” says Rafah Hanna, head of market data, EuroMTS. “We have signed a distribution agreement with Fixnetix following a demand from users for high speed direct access to our bond data.”
According to Finetix, TowerGroup recently cited that traders utilising advanced automated trading strategies in asset classes such as equities and futures and options reported significantly higher returns compared to those traders without.
“It is natural that the emerging automated trading market for bonds will quickly follow suit in this area, and demand direct access to increase performance or capture greater liquidity,” says Hugh Hughes, CEO, Fixnetix.
According to Fixnetix, the iX-Direct data service shaves hundreds of milliseconds off data vendor transmission times by delivering the end-to-end solution over its dedicated high capacity Ethernet network.