Fixed income broker-dealer Millennium Advisors announced it’s adopted a self-clearing model to drive down the costs of trading in an increasingly competitive marketplace and amid trends towards increased automation with higher volume in the bond markets.
The move to self-clear (processing all aspects of the trade clearing and settlement process internally, rather than through a third-party clearing firm) comes as the credit market is becoming increasingly efficient, in part due to the growing adoption of technology by non-traditional liquidity providers across the fixed income market, including ETFs.
“Self-clearing provides us with the ability to scale our operations even more,” said Laurent Paulhac, Group CEO of Millennium, in a statement. “Owning the clearing and funding workflow – combined with a unique blend of human and machine-powered trading – places us in an elite category among liquidity providers. It’s truly a game-changer, and we’re already eyeing up the opportunities in other business lines such as repo and securities lending.”
“While self-clearing is not a novel concept, Millennium stands alone in its approach to operational efficiency. This focus dates back to the roots of the firm, which – long before it became fashionable – has always realized that technology, analytical and operational superiority can drive significant pricing leverage. That’s good for us, and more importantly, great for our trading counterparties,” said Joe DeModna, head of Global Operations at Millennium, in a statement.