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Overbond and MTS BondsPro collaborate to bolster fixed income data aggregation and trade automation

By ET Bureau - October 04, 2022 3 Mins Read


Overbond, the leading API-based credit trading automation and execution service in the global capital markets, has entered into a data sharing and redistribution agreement with MTS BondsPro, the platform that offers access to liquidity and real-time execution on an anonymous, all-to-all order book. Overbond will integrate certain MTS BondsPro fixed income price data to enhance the coverage and precision of its AI-generated fixed income data feeds and automated trading solutions, and MTS BondsPro clients will gain access to Overbond’s fixed income prices and liquidity-confidence scores.

Fixed income trading has been re-shaped by the development of new financial products, the emergence of electronic all-to-all platforms, and the rise of non-dealer liquidity providers using algorithmic and high-frequency trading. Now, fixed income traders face heightened volatility and evaporating liquidity against a backdrop of rate hikes, inflation, and recessionary concerns.

In this environment, electronic and automated trading have become the new standards. These require precise, live data but significant fixed income data gaps persist because there is no unified, central source for bond trade data. Aggregating the available data into executable prices and liquidity measures requires sophisticated Artificial Intelligence (AI) and cloud-based processing for models, and most bond trading desks lack the resources and expertise to do this in-house.

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Overbond partners with the world’s largest trading venues and capital markets data providers to bring AI and cloud-based aggregated data and automated trading solutions to fixed income trading desks around the globe. Through its partnership with MTS BondsPro, Overbond AI will be able to integrate an additional 10 million price updates daily across 25,000 investment grade (IG), high yield (HY) and emerging market (EM) bonds. In turn, MTS data will now include Overbond liquidity confidence scores and best executable pricing. The MTS BondsPro data adds a previously untapped layer of information to AI fixed income data aggregation because it includes firm, executable prices in real time.

“Using post-trade data to generate real-time aggregated data feeds is challenging because of the time lag between the execution of the trade and the release of its associated data, and because only a limited proportion of bonds trade in a given day. By providing firm, executable prices in real time, MTS BondsPro fills the data gap between post-trade data and real-time—but non-binding―quotes. Integrating this additional layer of information into Overbond will increase the coverage, the precision and the discovery of best-executable pricing and liquidity in the fixed income markets,” said Vuk Magdelinic, CEO of Overbond.

“We are excited to be able to add Overbond AI-generated fixed income prices and liquidity scores to the already robust data we offer our clients, and to work with Overbond to increase the quality of data and information available to our clients” said David Parker, Head of MTS Markets International.

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