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Enhanced workflow creates new ways for the sell-side to optimize their trading

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Algorithmic trading (‘Algo Trading’) improves trading outcomes through better pricing strategy design, testing, and execution, with the scalability afforded by automation. High quality and reliable sources of data are essential for the for the successful design and implementation of complex algorithmic pricing and trading models.

To consistently, effectively and profitably identify and execute live market opportunities requires a robust and reliable foundation of data to power the modelling, of any level of complexity. This challenge is compounded in fixed income by the varying degrees of firmness and types of liquidity and information across market segments.

For fixed income credit traders there are essentially four key areas of insight that need to be incorporated into successful Algo Trading strategies:

  • The fundamentals of the credit – the maturity, the rate, the callability and the rating or viability of the issuer
  • The performance and trading flows of the market
  • Trends within the wider economy
  • Interest rates and credit risks

The relevant algorithmic trading strategies, created by Quantitative Analysts or ‘Quants’, can be developed, executed and generate profits at a speed and frequency that is many times higher than manual trading allows.

Building an Algo Trading system to normalise and interrogate data from the diverse sources required to trade effectively in credit is a complex and time-consuming process. It is further complicated by the need to manage data permissions and monitor all available transaction data along with the availability (and relative ‘firmness’) of respective competing quotes.

In order to achieve a successful outcome when implementing Algo Trading in credit, the firm’s ability to allocate sufficient ongoing resource and funding to the Quant strategy area is key. Therefore, leveraging existing relevant technologies that fulfil the requirement of ‘building blocks’ enables firms to more effectively allocate their capital. That is why partnering with an experienced and market proven Fixed Income specialist like AxeTrading can focus resources on the elements which will deliver the highest ROI, namely the Quant Team and modelling technology.


By using AxeTrader, firms can have full control of their choice of inputs and be secure in the knowledge that they have the market leading technology put at their disposal to execute their Algo Trading strategies:

  • Normalized market data
  • Liquidity graded according to price ‘firmness’
  • Transactional data
  • Algorithmic pricing/tiering
  • Rules based quoting and execution
  • High degree of configurability enabling adaptation to a multitude of Algo Trading strategies

Some other providers look to constrain and create a walled garden forcing users to be dependent on a limited range of options. We at AxeTrading know there is an alternative.

AxeTrading is not a trading venue, rather we free traders to make best use of their internal systems and trading strategies to access a diverse range of trading venues and bond market liquidity. We embrace the principles of openness, flexibility and interoperability to give traders seamless control of their business.

Through integration with pre-trade, middle and back-office systems AxeTrading aims to reduce operational risk, improve efficiency, enhance regulatory reporting and compliance. Algo trading integration, hedging and risk monitoring tools improve and streamlines the trading process.

This broader offering and enhanced workflow creates new ways for the sell side to optimize their trading reach and better service their customers.

The AxeTrader Quoting and Execution Management System (QEMS) is the dedicated Fixed Income advanced trader workflow:

We know that our cutting edge and flexible technology combined with our proven market experience demonstrates that we can effectively minimise the risk of change and deliver these benefits. AxeTrader delivers the essential platform for firms to build the final element of their Algo Trading strategy. This enables them to focus their resources and expertise on the areas that will provide most benefit and add value.

By delivering access to and bi-directional communication with:

By using the AxeTrader Transaction Monitor API, firms are able to interrogate and analyse their transaction data in real time to feed into their trading strategy thereby responding to market conditions with unmatched speed and insight.

This allows analysis not only of the trade as executed but the market depth and available liquidity throughout the entire lifecycle of the trade, capturing a full audit trail of all available pricing sources, to help deliver best-execution and market conformity processes.

By using AxeTrader’s purpose-built rules and workflow engine, every detail of the pricing and trading strategy can be set to meet the objectives of the firm by using all their available external and internal data feeds. Trading parameters can readily be set and controlled, with adjustable levels of automation from complete auto pilot to fully hands-on by identifying the key data points in a transaction combined with analytics from external tools. With robust permission controls the system aggregates customers’ own data but does not share it, unlike some other systems whose offering relies on aggregation and sharing of valuable data for their business model. AxeTrader’s highly configurable client tiering and auto-quoting gives complete control of inquiries pricing, quoting and trading which improves client acquisition, service, and retention.

Full control of the key levers of pricing, timing and quoting

The rule engine in combination with conditional alerting functionality, allows for core risk parameters to be monitored and adhered to, driven by back-office settings and analysis.

One stand-out feature of AxeTrader is the ability to call out, using APIs, to other systems during the trading process to take advantage of the latest information right up to the moment the trade is executed. This exemplifies the core ethos of AxeTrading to provide the most flexible, interoperable fixed income trading solution.

By having full control of the key levers of pricing, timing and quoting, firms who build their Algo Trading infrastructure for credit with the AxeTrading solution will be in optimum control. With AxeTrader at the heart of quoting and trade execution, firms can accelerate their Algo Trading to new levels. Alongside interrogation of their own database, they can draw insights from:

  • Integrating predictive modelling tools that looks at the probability that you will trade in a given range
  • Automatic strategy adjustment along with wider market activity including non-executed RFQs, missed trades and other prices available in the market
  • Quoting and trading patterns that offer trading advantage
  • Volume - oriented strategies
  • The frequency of trading segmented by types and individual clients
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