Global fixed income traders can use artificial intelligence (AI) to automate up to 50% of requests for quotes (RFQs) now that Overbond’s COBI-Pricing LIVE has been integrated into valantic’s eFICC trading systems.
COBI-Pricing LIVE is a customizable AI pricing engine that helps traders automate pricing for global investment-grade bonds. It generates best executable prices and liquidity scores for more than 100,000 fixed income instruments and builds curves for more than 10,000 issuers in various real-time liquidity scenarios. COBI-Pricing LIVE has an industry-leading refresh rate of less than three seconds — giving sell-side trading desks the ability to fully automate 30% of their RFQs and execute an additional 20% with trader supervision.
Sourcing liquidity in global bond markets is cited as the number one concern by institutional buy-side clients as the sell-side has significantly reduced its appetite for warehousing risk. This makes it even harder for the sell-side to offer effective RFQ services and get the best execution outcomes.
“With the combination of Overbond’s COBI-Pricing LIVE and the valantic FSA platform, traders can seamlessly harness the power of AI-driven best executable pricing and liquidity scoring within valantic FSA’s negotiation workflow — from pre-trade analytics to post-trade reporting. Trades can be executed through one integrated system so traders do not have to swivel between multiple systems. This maximizes the speed and quality of execution — doubling or tripling their previous capacity to respond to RFQs,” said Vuk Magdelinic, CEO of Overbond, in a statement.
valantic FSA’s eFICC trading platform, is a complete solution that meets the challenges of electronic bond trading today. Market making, bond pricing and hybrid connection to electronic D2D and D2C venues and data platforms are all integrated into a single application.
“We are pleased to be working with other innovative firms like Overbond that help solve very real liquidity problems in today’s fixed income markets. This is especially the case in credit markets which have seen an explosion in issuance over the past year” said Joachim Lauterbach, CEO valantic FSA, in a statement.