September 20, 2023 – London UK and Milan, Italy: Overbond and SoftSolutions announced that they are working together to provide an intelligent pricing and trading solution designed for Fixed Income liquidity providers.
By combining the capabilities of their respective premium products – Dynamic Margin Model from OverBond and nexRates from SoftSolutions –a combined solution will be capable of automatically responding to Request for Quotes with tuned pricing, optimised for market makers and their clients.
Our cutting-edge automated client-driven pricing technology, a game-changing advancement designed to capture vital business opportunities that were previously lost due to competitive pressures and tight response timings. Leveraging our deep expertise in the industry, this innovative solution ensures that our clients receive the most competitive pricing in real-time, thereby solidifying our commitment to continuously enhancing business outcomes for our valued clients.
The Global Bond Markets provide their own unique challenges when it comes to pricing bonds. Due to the generally illiquid nature of the assets, liquidity providers need to balance the requirement to provide a competitive price for clients whilst simultaneously ensuring they can effectively manage their risk. Recognising that, liquidity providers typically tier their customer pricing depending on the behaviour of the clients, narrowing margins for their best partner clients.
Sales & trading desks take a decision on a client’s tier when they are enabled to trade and then periodically review this, however this is often done infrequently and it can be difficult to interpret large datasets to obtain meaningful insights into client behaviour.
With the combined Overbond Margin Model and nexRates solution, firms will be able to assess client tier and price on a continuous basis, achieving more targeted pricing for the bond and the client. This continuous assessment is done in real-time and reduces the need for a comprehensive periodic review.
This comprehensive capability provides both competitive pricing whilst also focusing on appropriate risk mitigation for every trade.
For more than 20 years SoftSolutions has been delivering powerful, robust, and scalable fixed income trading technology to the world’s largest and most forward-thinking trading institutions. Our platforms integrate the most critical trading tools, enable full data alignment and end-to-end trading automation, and deliver vital business insights and intelligence. Clients are able to boost operational efficiency, improve execution quality, enhance performance productivity and empower well-informed trading decisions, all the while remaining fully compliant with the latest market regulations.
Overbond is a developer of process-redefining, AI-driven data and analytics and trade automation solutions for the global fixed income markets. Overbond performs market surveillance, data aggregation and normalization, and deep AI quantitative observation on more than 100,000 corporate bonds and fixed income ETFs. Applying proprietary artificial intelligence to pricing, curve visualization, market liquidity, issuance propensity, new issuance spreads, default risk and automated reporting, Overbond enables trade automation and enhances trade performance and portfolio returns. Clients of Toronto-based Overbond include global investment banks, broker-dealers, institutional investors, corporations and governments across the Americas, Europe and Asia. For more information, please visit www.overbond.com.