Overbond’s fixed income artificial intelligence (AI) now offers protocol and system agnostic integration with venues and e-trading systems used by sell-side and buy-side trading desks thanks to a strategic alliance with electronic trading innovator, Rapid Addition. The collaboration will help fixed income traders around the globe to harness the power of Overbond AI and automate up to 50% of RFQs.
Rapid Addition’s expertise in FIX protocol, counterparty and market-place connectivity via its open API enterprise software platform will allow global fixed income trading desks to seamlessly integrate AI-driven bond pricing and liquidity scoring analytics into their workflow, regardless of which internal OMS, e-trading system, direct venue connectivity, cloud or on-premise solution they currently use. These API connections allow for internal system integration, pre- and post-trade external data vendor ingestion, and liquidity venue connectivity — ultimately creating a streamlined system capable of automating RFQ flow using Overbond’s AI engine.
With the internal system connectivity facilitated through Rapid Addition’s Open API, sell-side bond trading desks can make Overbond’s AI models their own by accessing recorded transaction history to train the model according to the trading style of the desk. By maximizing the precision of these models with cross-venue coverage, desks can optimize P&L performance.
“Great tools are most powerful when they are easy to deploy, easy to use and a seamless part of your workflow. Overbond has a powerful suite of AI modeling and visualization tools for trading automation, and with Rapid Addition’s ability to provide interoperability and market connectivity we can now provide sell-side traders with a system that is not just capable of automating RFQ flow in any currency they make markets in, but is fully integrated from front to back,” said Vuk Magdelinic, CEO of Overbond.
Overbond’s COBI-Pricing LIVE is a customizable AI pricing engine designed to assist traders in automating pricing and trading workflows for global investment-grade bonds. It can generate prices and liquidity scores for more than 100,000 fixed income instruments and build 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.
According to Rapid Addition CEO, Mike Powell, “We continue to see increased electronification across capital markets, partly driven by changes to regulation and market structure, but also driven by the deployment of new technologies. We are excited by the potential of combining Overbond’s expertise in AI and Machine Learning with the latest iteration of Rapid Addition’s market leading electronic trading middleware, RA Platform 3.0. At a time when firms are looking to improve ROI and competitive differentiation, this new generation of flexible, open technology will help empower the next phase of their business growth.”
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.
About Rapid Addition
Rapid Addition’s platform and modular development framework provide the foundational technology needed to build flexible, high performance and resilient electronic trading solutions. Rapid Addition was an early pioneer in the development of electronic messaging technology and is recognised as a market leader in financial messaging protocols and FPGA. Helping customers with a broad range of use cases across the trading life cycle, Rapid Addition serves sell-side firms, asset managers, exchanges and liquidity platforms around the globe.