MarketAxess’ First Client Algo Trade Using Adaptive Auto-X06.23.2023
MarketAxess Holdings, the operator of a leading electronic trading platform for fixed-income securities, announced the first client algorithmic trade executed across multiple protocols using Adaptive Auto-X™, the Company’s multi-protocol automated execution solution currently in pilot. MarketAxess also announced the next phase of the pilot, which will introduce additional liquidity-seeking strategies depending on trader objective, urgency or pricing requirements.
MarketAxess launched the Adaptive Auto-X pilot earlier this year, building on the success of an established suite of automation protocols. Phase one of the pilot provided users with low-friction automation workflows to interact with passive liquidity across RFQ, order book and other matching protocols. Users can specify a protocol or use data-driven, smart-order-routing to maximize the potential liquidity sources leveraged across multiple MarketAxess trading protocols and liquidity pools. Adaptive Auto-X combines proprietary MarketAxess data and predictive AI-driven analytics to bring even more workflow efficiency to automatic trade execution.
In Q1 2023, the first pilot clients were able to place a resting order that simultaneously connected to multiple liquidity pools via MarketAxess’ first-of-its-kind algorithm: CP+™ Peg. Clients are able to control their algorithms by customizing sizing, visibility and pricing parameters in real-time.
“As the fixed income market becomes more complex and finding liquidity becomes more challenging, buy-side firms need to be armed with smart trading tools that can efficiently seek liquidity across a broad set of protocols while avoiding market impact,” commented Gareth Coltman, Global Head of Automation at MarketAxess.
“Adaptive Auto-X is an exciting leap forward in intelligent automation which can deliver greater alpha-generation opportunities for MarketAxess clients.”
Automated trading on MarketAxess has been used by more than 200 active clients since inception, amounting to over $750 billion in volume and over 4 million trades. Year to date, automation protocols represent nearly 10% of total trading volume on MarketAxess.
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