SEPARATE TRADING OF REGISTERED INTEREST AND PRINCIPAL OF SECURITIES
STRIPS trading is an important, but often underestimated, component of global bond markets. Historically, this has been seen as a specialised area and so the software used has been niche, designed only for STRIPS trading workflows. As a result, the software has been expensive and has inhibited innovation.
STRIPS traders have been restricted in their ability to meet their clients’ expectations. They currently take hours to manually set up new instruments and start serving customers.
In today’s rapidly evolving, more electronic bond markets, traders need a more holistic integrated trading system that, not only, handles their STRIPS trading but delivers pricing, electronic trading and auto-quoting all in one single application.
The AxeTrader Quoting and Execution Management System (QEMS) is the solution. It offers an advanced STRIPS trading workflow that not only surpasses that of product limited software systems, but is also completely integrated into the broader workflow needs of fixed income traders. This cutting-edge fixed income trading technology will free them from the legacy STRIPS trading solutions provided by incumbent providers.
With AxeTrader’s Custom Security Static Data (CSSD) feed, setting up STRIPS can be fully automated and take only seconds. Traders can price more accurately, competitively and be quicker to market, meaning they can now service their clients faster and more efficiently.
AxeTrader users can benefit from continuous real-time "rich/cheap" analysis of STRIPS vs. bonds, and the fully automated booking process for stripping or reconstitution takes the burden from traders - allowing the easy handling and more active trading of STRIPS.
With this powerful tool on hand, trading and pricing of strippable bonds and their constituents (principals and coupons) becomes as easy as trading and pricing straight bonds. AxeTrader not only supports the full process of pricing, handling and trading of STRIPS, but can also automatically update the corresponding static data of STRIPS and their constituents. This capability significantly enhances the ability to analyze and trade STRIPS.
STRIPS instruments are listed across many venues including TradeWeb, Bloomberg, MTS and CanDeal. AxeTrader is fully integrated with these and is ready to trade.