Neptune, the open standards network utility for pre-trade indications in bond markets (not the asset manager, also called Neptune), is now connected to Fidessa, its first OMS (order management system) provider.
The utility has now completed connectivity to Fidessa’s buy-side OMS platform to distribute pre-trade data to assist the buy-side with liquidity and price discovery, utilising their existing workflows.
With 17 dealers committed to the platform and over $60bn (€53.8m) of gross notional and 12,000 line items, referencing over 8,000 ISIN’s across IG/HY/EM and covered bonds and 20 CCY’s, Neptune is expanding from its initial focus of purely European IG/HY corporate bonds, to a portfolio which also reflects the global nature and reach of its user base.
Neptune offers a commoditised and open standard FIX network that allows banks and investors to exchange controlled and targeted real-time axe and inventory using a robust data governance model that minimises unintended information leakage.
By focusing on the creation of a technology utility to exchange this information directly between market participants, Neptune enables “greater transparency” of trading interests across the marketplace between buyers and sellers of bonds (usually banks and investors such as fund managers, pension funds and asset managers), it said.
The Neptune network helps asset managers connect to the sell-side via any combination of the Neptune GUI, their own in-house developed OMS or an external OMS provider such as Fidessa.
The flexibility of connectivity options means they will be receiving pre-trade indications from multiple banks in real time through a single connection that can be integrated into their own in-house workflows.
“With the markets undergoing fundamental change, initiatives like Neptune that help buy-sides discover liquidity and price information for fixed income instruments are a big step forward in enabling investment managers to access these markets. The industry still has a long way to go, though, and the next challenge to solve is a consolidated feed of the 90 or so fragmented pricing mechanisms that exist,” Paul Nokes, CEO, Fidessa Buy-side, said.
“Extending the market information offered through our Minerva OMS to include the Neptune network is just one of the many steps Fidessa has taken to enable our customers to trade the corporate bond markets efficiently,” he said.