Overbond, the fixed income data, analytics and trade automation solutions provider, has partnered with interoperability specialist Interop.io, to improve fixed income trader workflows through FDC3 interoperability. The partnership aims to address the prevalent challenges of data silos and liquidity fragmentation in the credit markets, by enabling clients to integrate various applications and features into one cohesive and intelligent desktop environment.
By enhancing the trading workflow for users of both platforms, the collaboration between Interop.io and Overbond aims to address common issues that can hinder effective and profitable trading in credit trading, such as incomplete or isolated data and a lack of automation.
“We get a lot of traction in the fixed income space, because of the data fragmentation, the siloed applications, and the fact that many bonds are so illiquid,” says Reena Raichura, Director, Head of Product Solutions at interop.io, in conversation with TradingTech Insight. “If you want to rebalance a portfolio containing bonds that aren’t trading anymore, you have to look for similar bonds, which means sifting through lots of data. So we’re working with niche tech firms like Overbond, who can solve these types of data fragmentation problems, to streamline that workflow.”
The partnership with interop.io will enable Overbond’s suite of AI algorithms to become embedded within investment and trading workflows by interoperating with a wide range of applications and existing tech stacks, thus giving clients the opportunity to derive greater value from Overbond components.
“We try to be as interoperable as possible,” adds Vuk Magdelinic, Overbond’s CEO. “In the corporate bonds market structure, some bonds trade multiple venues, with very different liquidity profiles. So you have to look at different prices/size, liquidity profiles, and liquidity depth across different venues. That’s already multiple GUIs. Then you have to book the trades, some of which can be executed electronically but others are OTC, meaning you have to chat with somebody and negotiate using something like Symphony or IB Chat. And then you have your internal applications, so that’s already five different front ends, which is very inefficient. Working together with interop.io to glue this all together is therefore a big benefit to our clients.”
Key features of the collaboration include the ability for traders to quickly access liquidity and pricing information on Overbond with a single click from their portfolio or order/execution management systems, to rapidly asses best prices within Overbond, and to initiate direct communications with dealers, with relevant quote details pre-populated.
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