Octaura Holdings has integrated list and request for quote (RFQ) protocols to its existing syndicated loan trading platform.
According to the firm, the new protocols will provide clients with faster trade execution and enhanced price transparency with straight-through processing, alongside streamlining trading workflows for dealers and buy-side investors.
“The integration of List and RFQ protocols enables our clients to execute faster and make more effective investment decisions through our seamless electronic trading solution,” said Brian Bejile, chief executive of Octaura.
“Octaura’s agile technology ensures liquidity providers and liquidity takers experience a straightforward and user-friendly process on our platform.”
Loan traders on the buy-side are able to initiate an RFQ by submitting price requests to various dealers, receiving live executable bids/offers, and transacting at the best level with a chosen dealer.
As soon as a single line item or list is loaded onto the platform, investors can view the depth and bid/offer stack, allowing them to determine which dealers are axed to trade and factor Octaura’s liquidity score into their investment decision.
Octaura stated that dealers benefit from increased trade flow with their axes highlighted to the buy-side, alongside additional pricing colour.
“Octaura continues to be a growing component in our loan trading workflow,” said Tim Maloney, head of loan portfolio trading at Citi.
“Octaura’s combined RFQ and Lists offering delivers significant efficiencies for both the buy- and sell-side. The pre-trade analytics and post-trade straight-through processing help us make more informed decisions quickly and effectively.”
Elsewhere, the list protocol utilises pre-trade analytics which inform investors of dealer liquidity and historical loan performance.
Traders using this protocol are able to send the portfolio of loans to several market makers for pricing and receive a range of prices on every line item in near real-time. This also allows for processing of up to 500 line items with calculations managed through the platform across all dealers that are in competition.
“The ease of use, improved execution, and processing certainly have made day-to-day workflows more efficient with the added benefit of improved pricing,” said Jimmy Rong, credit trader and AVP at The TCW Group.
“We’re excited to reap similar benefits with Octaura’s new List trading functionality.”
Octaura has been nominated for the Leaders in Trading 2023 Award for Fintech of the Year. For more information, visit our event page.