JP Morgan expands rates algo trading offering to support market electronification

Expansion makes JP Morgan’s rates algo offering equal to its long-standing FX offering; bank is the first dealer to go live on Bloomberg for automated treasury execution.

JP Morgan has expanded its rates algo franchise to support the wider electronification of rates trading, The TRADE can reveal.

As part of the expansion, JP Morgan will now offer a complete set of algo order types available in rates across time, limit and market. The offering is available via the bank’s single dealer platform, Execute, and via API, with plans to get the offering live with FlexTrade and Tradeweb in the future.

The bank launched its existing TWAP rates and adaptive algos last year. Both use JP Morgan’s internalised liquidity pool.

Today’s announcement comes as part of the wider market’s continued electronification of the rates markets, which has historically had limited algo usage and instead favoured risk transfer via RFS and RFQ for pricing and execution.

“This expansion of our UST [US treasuries] rates algo franchise is an important milestone in our rates electronification journey,” Chi Nzelu, head of FICC eTrading, JP Morgan, told The TRADE.

JP Morgan is also the first dealer to go live on Bloomberg for automated US treasuries algo execution, meaning clients can now place an order on the platform and executions are streamed back for clients in real time with electronic trade booking once the order is done.

The move means the bank’s rates algo offering will now be equal to its long-standing FX algos offering in terms of analysis and tools available. JP Morgan plans to extend the market structure information available in rates to the same level as its FX offering in the coming months.

“Algos help clients manage costs, efficiently access liquidity and are an important utility in the toolkit given the current market environment,” added Nzelu. “Other benefits include the time savings associated with the automation of workflows, the ability to access multiple different sources of liquidity, and the availability of pre- and post-trade analytics.”