Looking to take their fixed income business to the next level
A leading Asian bank was looking to take their fixed income business to the next level
A leading Asian bank was looking to take their fixed income business to the next level. They required a system for electronic bond trading and automation of their trading processes. The solution had to support market standards, offer significant competitive advantages and remain responsive to market development. Some of the key requirements included the capability to provide a single interface to trade on multiple markets and the ability to handle counter-party limits. They needed a partner that could not only support their current requirement but also help them adopt more advance tools for Fixed Income Trading later on. They selected the AxeTrader Quoting and Execution Management System (QEMS) that provides unequalled market making, quoting, bond pricing and order execution. By unifying the workflow and using the firm’s real time, historic and external pricing data it provides the fullest representation of the market and can handle all trading flow on one screen. The user configurable quoting engine is better suited to today’s market and modern business needs enabling users to move beyond legacy technology.
Their trading revenue is optimized through having connections to liquidity from multiple trading platforms, making it possible to reach more counter-parties and trade at better prices. AxeTrader provides a single workflow which allows comparison of prices and control of trading in one view. To reduce costs the trading system needs to be efficient. With AxeTrader it is possible to automate various processes to import the data required for trading and export data for STP flow and reconciliation. At the same time, the bank is now able to increase revenue by using the Auto Quoting function to automatically control their quoting/trading strategy from many “odd lot” trades. They are able to set Auto Quoting Rules based on a wide range of conditions including:
This enabled them to define prices and either trade automatically or alert traders when their input would be needed. This has resulted in a tripling of the number of trades done with the same number of Fixed Income traders. This automation also allowed the trading desk to save over 50% of their time to focus more on larger block trades, thus maximizing higher revenue potential trades.
AxeTrader's pricing sheets support bi- directional data transmission and provides an engine to calculate prices based on single data points, which can be aggregated, or curves and benchmarks (e.g. zero/swap- curve). This allows traders to interact with and dynamically adjust prices on a single instrument level or for instrument groups and customized decision drivers.
With AxeTrader they were also able to save significant time by having automatic processes to onboard new counter-parties, import positions, credit limits and instruments. Instrument static data can be updated automatically for floaters and inflation linked bonds from an external source. Further, instrument static data can be updated in real-time for non-inventory trading from an external source.
AxeTrader enhanced their trading capabilities in many ways, including:
The experienced AxeTrading integration team supported the bank in the configuration of the out-of-the-box solution. The team worked with the bank to ensure the connections to the trading venues to which they subscribed and other external data sources were properly setup.