Interdealer broker ICAP is revamping the technology platform which supports its BrokerTec trading system for US fixed income instruments as electronic trading of the asset class continues to grow.
In an installation scheduled for completion by the end of April, BrokerTec will run on a modified version of Nasdaq OMX’s Genium INET system, drastically improving the platform’s latency and capacity. According to ICAP, the upgrade to Brokertec will handle ten times as much order volume and will decrease order input latency to 200 microseconds from an average speed of 10 milliseconds. The system will retain existing functionality from the legacy trading system and will also incorporate built-in capabilities for manual traders.
“All BrokerTec customers, including both manual and API traders, will now benefit from substantially increased performance and greatly enhanced user experience,” said Dan Cleaves, head of BrokerTec US.
“The markets we trade in require the most sophisticated platforms available,” added Steve Yu, director of rates and e-trading technology at Bank of America Merrill Lynch. “We’re very happy with BrokerTec’s new system, and the switchover happened on time and without a hitch. Given the emphasis on speed and reliability, we feel confident the BrokerTec system will continue to meet our short- and long-term trading needs.”
Electronic trading in fixed income instruments continues to rise with platforms such as MarketAxess reporting substantial increases in trading volumes over the last 12 months.
BrokerTec offers trading in many US and European fixed income products including US treasuries, European government bonds and European repo instruments to over 500 customers in 50 countries.