TORONTO, ON and NEW YORK, NY — JANUARY 21, 2021 — Overbond continues to lead the way in the automation of global fixed income trading. The provider of AI quantitative analytics for institutional fixed income capital markets is now the first to integrate Euroclear LiquidityDrive settlement-layer data for fixed income trade automation purposes.
“The lack of a centralized source of trade data is one of the biggest hurdles to automating fixed income trading. But now, using Euroclear LiquidityDrive, Overbond can access volume information for OTC trades that is not found in any other electronic venue-specific data feed. Integrating OTC trade volumes into AI models enhances the precision of bond liquidity scoring and best executable pricing. Adding settlement layer data to our AI is the last frontier in data aggregation necessary for real-time bond trading automation,” said Vuk Magdelinic, CEO of Overbond.
Euroclear LiquidityDrive is a new data service that offers in-depth liquidity analysis on all fixed income instruments settled within Euroclear. Euroclear LiquidityDrive covers more than 460,000 global corporate and government bonds, and in 2019 the Euroclear post-trade ecosystem settled the equivalent of EUR 837 trillion in securities transactions. The service combines executed trade settlement data with custody activity data and is agnostic of whether the instrument is traded via an electronic platform or voice traded.
Overbond’s COBI-Pricing LIVE is a customizable AI pricing engine designed to assist traders in automating pricing and trading workflows. As part of COBI-Pricing LIVE, Overbond’s liquidity scoring model uses Euroclear LiquidityDrive data as one of the various inputs to the AI liquidity scoring engine.
Overbond’s AI generates a single liquidity score per CUSIP/ISIN. This allows for more accurate risk measurement and enables trade automation in three different execution styles: no-touch, one-touch or trader supervision. Using AI liquidity scoring, COBI-Pricing LIVE tiers all trades accordingly and determines if they qualify for full automation or trader supervision, or if they should not be traded at the current time.
Liquidity scores are generated for more than 100,000 fixed income instruments with an industry-leading refresh rate of less than three seconds — giving sell-side trading desks the ability to fully automate 30% of their requests for quotes (RFQs) and execute an additional 20% with trader supervision.
Overbond is a developer of process-redefining, AI-driven data and analytics and trade automation solutions for the global fixed income markets. Overbond performs market surveillance, data aggregation and normalization, and deep AI quantitative observation on more than 100,000 corporate bonds and fixed income ETFs. Applying proprietary artificial intelligence to pricing, curve visualization, market liquidity, issuance propensity, new issuance spreads, default risk and automated reporting, Overbond enables trade automation and enhances trade performance and portfolio returns. Clients of Toronto-based Overbond include global investment banks, broker dealers, institutional investors, corporations and governments across the Americas, Europe and Asia. For more information, please visit www.overbond.com.
The Euroclear group is the financial industry’s trusted provider of post-trade services. At the core, the group provides settlement, safe-keeping and servicing of domestic and cross-border securities for bonds, equities and derivatives to investment funds. Euroclear is a proven, resilient capital market infrastructure committed to delivering risk-mitigation, automation and efficiency at scale for its global client franchise.
The Euroclear group includes Euroclear Bank — which is rated AA+ by Fitch Ratings and AA by Standard & Poor’s — as well as Euroclear Belgium, Euroclear Finland, Euroclear France, Euroclear Nederland, Euroclear Sweden and Euroclear UK & Ireland. Euroclear settled the equivalent of EUR 837 trillion in securities transactions in 2019, representing 239 million domestic and cross-border transactions, and held an average of EUR 30.1 trillion in assets for clients. For more information about Euroclear, please visit www.euroclear.com.
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