Iress has partnered with Ediphy to offer Iress trading customers access to a low-cost mechanism to trade fixed income and the ability to source comprehensive liquidity from fixed income providers and venues covering the USA, Europe and APAC.
Talking to The DESK exclusively, Ediphy CEO, Chris Murphy, and Iress CEO, global trading and market data, Jason Hoang, explain how fast-changing market structures and increased investor demand for fixed income securities present growing challenges for investment managers – and how this solution caters to such demand, and is designed to reduce pain points for clients.
Murphy told The DESK, “New trading venues, an explosion of data and the advent of non-traditional liquidity providers are forcing asset managers to adapt quickly or get left behind. Very few asset managers have the internal capabilities for the large scale data analytics and trading infrastructure required to capitalise on these changes. With Ediphy they don’t need to.”
Iress CEO Hoang said, “Changes in regulation and increased liquidity fragmentation is making it more challenging for investment managers to keep up with the pace at which market structures are changing.
“Some of the other challenges facing investment managers include data opacity, and with further market fragmentation this can lead to increasing transaction costs.”
Murphy told The DESK that Ediphy greatly reduces the total cost and complexity of asset managers’ fixed income trading operations. “Firms using Ediphy achieve better execution outcomes at a fraction of the cost of incumbent operating models,” Murphy added.
“Our clients only have to onboard Ediphy and upon doing so they obtain access to all downstream market liquidity in our extensive network. Ediphy’s FairEx systematic strategy ensures best execution across trading protocols,” Murphy explained.
Hoang explained to The DESK that while fixed income has traditionally been a secondary asset class for many of the firm’s clients, there is increasing demand from clients to increase the depth and breadth of the firm’s liquidity coverage outside of equities as an asset class. Hoang said Iress customers are increasingly demanding the ability to trade fixed income instruments, with up to 20% of their order flows being aligned to fixed income as an asset class.
Murphy added that higher interest rates brought with it a deluge of retail and wealth management client interest in fixed income investments. “Asset managers are inundated with government and corporate bond orders and many are limited by their existing fixed income trading operations.”
Ediphy’s offering includes fixed income execution and workflow automation, large-scale data management and analytics, and the firm provides automated execution in government, sovereign, supranational, and agency bonds (SSAs), credit bonds and cleared interest rate swaps (IRS), with aggregated liquidity in excess of 250,000 International Securities Identification Numbers (ISINs).
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