The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

IHS Markit Teams Up with Wave Labs to Enhance Fixed Income Price Discovery

IHS Markit has partnered with Wave Labs, a start-up specialising in fixed income liquidity sourcing, to accelerate price discovery and deliver insights and operating efficiencies to buy-side fixed income managers. The arrangement involves plug-and-play integration of IHS Markit’s thinkFolio multi-asset investment management platform with Wave Lab’s Electronic Liquid Seeking Application (eLiSA).

Sourcing liquidity in fixed income markets continues to present a number of challenges to the buy side, and investment management firms are looking for increasingly innovative solutions to improve price discovery and gain easier access to liquidity.

“ThinkFolio is a leading and highly capable multi asset OMS, but it is not an EMS,” says Brett Schechterman, global head of thinkFolio at IHS Markit. “While eLiSA is primarily a trading technology, it also marries well with our ethos in that it seeks to address portfolio managers’ requirements from a liquidity and price discovery angle. So several synergies come into play with this partnership.”

Wave Labs was founded in late 2018 by industry veteran Miles Kumaresan, formerly head of trading and FinTech at Nordea Asset Management. The company’s eLiSA product aims to empower true holders of fixed income liquidity to transition from an intermediary-driven to a liquidity-driven market structure. Utilising cloud-based APIs to route orders and complete trades, eLiSA eliminates the need for liquidity venue-provided UIs. It also offers a rich set of both pre- and at-trade analytics, as well as multiple order types, automated liquidity seeking and liquidity provisioning features.

A key aspect of eLiSA is that it fits in with trader’s existing high-touch workflows. “In credit trading, you can’t just focus on electronic execution, because voice still has the biggest market share,” says Kumaresan. “There’s a reason why traders trade the way they do, the nature of fixed income is such that you need to have that human interaction to get good quotes and to trade, so you need to support voice, RFQs and so on, because that’s a fundamentally important way to source liquidity.”

The joint solution is targeted mainly towards buy-side credit desks. “The partnership with Wave Labs will allow us to offer enhanced credit trading capabilities to our current global client base,” says Schechterman. “It’s also exciting to be able to go after new business in tandem through the creation of front-office solutions, rather than thinking solely through the lens of our respective products alone. So thinkFolio and Wave Labs will be going in together and talking to both existing clients and potential future clients and their associated credit desks about the value proposition.”

Related content

WEBINAR

Upcoming Webinar: Infrastructure monitoring: mapping technical performance to business performance

Date: 1 July 2021 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes It’s a widely recognized truth that if you can’t measure something, you can’t improve its performance. As high-performance connectivity technologies have established themselves in the mainstream of financial firms’ trading architectures, the ability to monitor messaging and data infrastructures...

BLOG

Neuravest Harnesses AI, Alt Data for Portfolio Construction Platform to Improve Fund Performance

Neuravest Research, the data validation and predictive analytics company launched earlier this year as a successor to Lucena Research, has released a portfolio construction and management platform designed to help asset managers deliver superior fund performance through algorithmic portfolios using alternative data and AI technologies. According to Neuravest founder and CEO Erez Katz, the offering...

EVENT

Data Management Summit Virtual

The Data Management Summit Virtual will bring together the global data management community to share lessons learned, best practice guidance and latest innovations to emerge from the recent crisis. Join us online to hear from leading data practitioners and innovators from the UK, US and Europe who will share insights into how they are pushing the boundaries with data to deliver value with flexible but resilient data driven strategies.

GUIDE

Complex Event Processing

Over the past couple of years, Complex Event Processing has emerged as a hot technology for the financial markets, and its flexibility has been leveraged in applications as diverse as market data cleansing, to algorithmic trading, to compliance monitoring, to risk management. CEP is a solution to many problems, which is one reason why the...