Saxo Capital Markets, the multi-asset trading and investment specialist, announces today a major transformation in the fixed income trading space with the launch of the first truly digital trading solution for corporate and government bonds across markets globally.
As part of the launch, Saxo will offer its clients access to trading opportunities in over 5,000 investment grade and high yield corporate and government bonds from all over the world and in 20 different currencies, including AUD-denominated securities. The solution will be rolled out in October on SaxoTraderGO, Saxo Group’s multi-asset trading platform.
Saxo will combine its technological prowess and its relationship with 40 of the largest liquidity providers in the global bond markets to offer both retail and institutional clients more transparent, cheaper and more efficient access to fixed income trading opportunities.
The move is set to revolutionise the way investors trade bonds, a process which currently involves a manual “request for quote” (RFQ) from a very small number of banks, and in some instances a single bank. Such process is inefficient as it does not explore the depth of the liquidity and range of prices available in the marketplace.
“Saxo’s digital bond trading solution will connect traders with the entire global bond market in a direct, competitive, transparent, and efficient manner,” said Saxo Capital Markets Australia CEO, Ben Smoker.
Under the new online trading solution, each bond order will be directed to an optimised dealer auction which will comprise up to 40 of largest bond liquidity providers. Thanks to technology, most orders will be executed within seconds, but, most importantly, traders and investors will experience huge cost savings due to the competitive nature of this multi dealer environment.
Saxo’s new online solution will allow, on average, a price improvement for clients of 30 basis points in corporate bonds and a 5 to 10 basis points in government bonds.
“Large institutional investors have had access to fixed income electronic trading for a long time. We’re now enabling retail investors to access an efficient, cheaper and digitised solution, effectively disrupting traditional financial services and levelling the playing field,” Mr Smoker added.
