Charles River Development, a State Street Company, announced a collaboration with LedgerEdge to provide investment firms with access to corporate bond liquidity from the LedgerEdge ecosystem via the Charles River Inventory Hub and Order and Execution Management System (OEMS).
LedgerEdge uses distributed ledger technology (DLT) to modernize institutional-grade trading services and protocols in the $41 trillion global corporate bond market. Clients exercise full control of their data while gaining greater clarity into available liquidity, counterparties and execution quality.
Charles River’s Inventory Hub delivers an aggregated, venue and dealer agnostic view of liquidity that helps firms reduce execution costs and facilitate price discovery. Traders can view inventory in the OEMS, receive updated indications of interest and quotes, and place orders for a full range of products.
David Nicol, CEO and co-founder of LedgerEdge, said in a statement that the partnership will deliver “an integrated trading workflow that can support analytics and transaction cost analysis to help inform traders managing complex, high touch trades”.
Michael Beattie, director of Product Strategy at Charles River Development, said in a statement that clients will have access to “innovative new trading protocols, improved data governance and ownership, and better visibility into trading decisions”.
“As corporate bond markets continue to grow in size and complexity, accessing liquidity from the LedgerEdge ecosystem will help clients contain trading costs and reduce information leakage while gaining deeper insight into the venues, brokers and liquidity providers they interact with,” Beattie said in a statement.
Among other innovations, LedgerEdge enables traders to describe the conditions under which an order will be revealed, adding logic to assess potential matches. This helps reduce market impact and targets where liquidity is displayed. The LedgerEdge ecosystem includes many of the leading global banks, asset managers, and market makers.