06.11.2013
By Terry Flanagan

Fixed Income Trading Venue to Launch

DelphX Services Corp., an SEC-registered broker dealer, is preparing to launch an anonymous order-driven market with pre-trade and post-trade transparency, and has contracted with Interactive Data Corp. for U.S. fixed income reference data and real-time and historical Finra Trace data.

This capability will allow DelphX to deliver dynamic access to a set of current and historical transaction data, along with continuous fixed income pricing that can help clients to meet fair value requirements.

“DelphX is committed to providing a transparent and level playing field to market participants, facilitating deep price-sensitive liquidity sourced by issuers and buy-side and sell-side firms, as well as centralized order interaction and dynamic risk and opportunity management among market participants,” said Larry Fondren, president and CEO of DelphX. “Our innovative technology, combined with Interactive Data’s depth of reference data and real-time global data feeds, ensures that our upcoming market entry will provide a comprehensive solution for market-wide price discovery and centralized trading.”

DelphX will provide continuous real-time pricing for more than 25,000 listed securities, including those that rarely trade, and open all-to-all trading of those issues.

Evidence-based valuation of most corporate, ABS/MBS and other fixed income securities is enabled by the proprietary MAVEn protocol, which continuously adjusts, validates and publishes the price of every listed security based on the historical and current transaction pricing of cohort securities determined to be ratably congruent.

Interactive Data is providing the key reference, historical and real-time data feeds that DelphX employs to calculate and validate its MAVEn prices. “We are pleased to team with DelphX to offer a wide range of our data feeds, which can help them provide transparency for the fixed income markets, validate fixed income prices and facilitate new trading opportunities for market participants,” said Mark Hepsworth, president of Interactive Data’s Pricing and Reference Data business.

Interactive Data is providing DelphX with its reference data for U.S. government bonds and U.S. corporate bonds via Apex, its suite of reference data services. As a result, DelphX subscribers, which include fixed income buy-side and sell-side market participants, can access the continuous DelphX MAVEn prices derived from this and other data, as well as Trace data via Interactive Data’s real-time feeds.

The Fixed Income Connectivity Working Group of leading sell side banks (FICWG) is promoting the adoption of open, standardized protocols for the trading of fixed income cash bonds.

FICWG has worked in collaboration with the FIX Protocol Ltd (FPL), to create best practices recommendations for trading fixed income instruments via the FIX Protocol.

Work on defining the first version of the best practices for trading bonds commenced in March 2012 and was formally published by the FIX Protocol standards body in February 2013.

Since then, many of the leading electronic bond venues have moved to adopt the open FIX Protocol and the associated best practices for the electronic trading of government as well as major credit instruments.

Related articles

  1. Algorithms have become more prevalent in the spot FX market.

  2. Congress Unlikely to Act on HFT

    QB’s Algo Suite for futures market trade execution is also being co-located to HKEX.

  3. Breaking data silos is key to deploying automation beyond 'nuisance' orders.

  4. They can be used on quantum hardware expected to be available in 5 to 10 years.

  5. Regulation and Liquidity Top Concerns in Fixed income

    Streaming blocks change the basis of matching and price discovery so institutions can find new liquidity.