MarketAxess has executed the first client algorithmic trade across multiple protocols using Adaptive Auto-X, its multi-protocol automated execution solution currently in pilot.
The next phase of the pilot has also been announced by MarketAxess, which will offer increased liquidity-seeking strategies depending on trader objective, urgency or pricing requirements.
The Adaptive Auto-X pilot was launched earlier this year with the aim to make plugging into fragmented liquidity pools easier for users by taking MarketAxess’ liquidity pools and placing them alongside its data and analytics offering, allowing for more complex automated workflows to be set up.
The move looks to address growing demand from institutions for zero touch trading services to help ease the pressure off of desks which have increasing workloads, while headcounts begin to fall.
Read more: There is no such thing as zero touch trading
The initial phase of the pilot offered users with low-friction automation workflows to interact with passive liquidity across RFQ, order book and additional matching protocols.
Users have the ability to specify a protocol or use data-driven, smart-order-routing to maximise liquidity sources leverage across various trading protocols and liquidity pools from MarketAxess.
According to MarketAxess, Adaptive Auto-X combines proprietary data and predictive AI-driven analytics from the firm to bring improved workflow efficiency to automatic trade execution.
In the first quarter of this year, clients of the pilot were able to place a resting order which simultaneously connected to various liquidity pools via MarketAxess’ CP+ Peg algorithm. Clients can control their algorithms by customising sizing, visibility and pricing parameters in real-time.
“As the fixed income market becomes more complex and finding liquidity becomes more challenging, buy-side firms need to be armed with smart trading tools that can efficiently seek liquidity across a broad set of protocols while avoiding market impact,” said Gareth Coltman, global head of automation at MarketAxess.
“Adaptive Auto-X is an exciting leap forward in intelligent automation which can deliver greater alpha-generation opportunities for MarketAxess clients.”