Analytics provider Overbond has teamed up with communications specialist IPC to automate fixed income trading using AI algorithms.
Through the partnership, the FinTechs will introduce technology that allows voice transaction data to be translated into algorithms for executing automated trades in fixed income.
As part of the agreement, IPC’s point-of-trade voice transaction data will be integrated into Overbond’s AI pricing and liquidity algorithms.
“Roughly one quarter of fixed income trades in the United States and Europe are still executed by voice,” said Vuk Magdelinic, chief executive officer at Overbond. “This heretofore uncaptured data was a significant gap in AI-powered, automated fixed income trading and modelling, and will be erased by Overbond’s strategic collaboration with IPC.”
IPC’s dictation as a service is cloud and natural language processing (NLP) based, and is powered by its financial ecosystem, Connexus Cloud. It enables traders to dictate their trade jargon and then translates the output in real-time through a visualisation application, giving end-users an exportable and structured format of data.
The communications specialist expanded the data remit of its Connexus ecosystem through an extended partnership with data and trading technology provider Vela in August last year that saw its users gain access to Vela’s SuperFeed.
Fixed income has undergone continuous evolution in the last year as electronic trading initiatives continue to transform the market. In the US market, electronic trading of US investment grade and high yield bonds grew by 111% and 145% respectively in the last three years, research by Coalition Greenwich found.