Synchronicity SaaS with bi-directional FIX

03 August 2016 in COMPANY NEWS by Tim Binnington

TRANSFORMING THE TIME TO MARKET, LOWERING THE COST OF ON-BOARDING, AND DELIVERING TRUE BI-DIRECTIONAL FIX CONNECTIVITY

Algomi continues to bring innovation to fixed income markets for the sell-side. We are rolling-out our award winning sell-side engine, Synchronicity, as a Software as a Service (SaaS) solution.

Synchronicity has brought velocity to the global bond markets for the major dealers and buy-side firms that we’re already working with, markets which have been burdened by liquidity problems. Developing our Synchronicity engine as a SaaS offering has compelling operational and financial benefits, and is able to meet both unique business requirements and assist with the new regulatory requirements that the banking sector faces, for the widest possible range of sell-side institutions.

Synchronicity SaaS has been developed in collaboration with leading banks to enable improved liquidity in the global corporate bond markets for the widest possible group of dealers. It delivers an actionable Virtual Balance Sheet TM and a comparable range of features available on the installed version of the platform, and connectivity with buy side clients through Algomi’s Honeycomb network.

The SaaS solution helps banks overcome the challenges typically faced when adopting new technology, transforming the time to market and lowering the cost of on-boarding, with no capital investment. The greatly reduced requirement for internal resources, means that Synchronicity SaaS removes the challenges of technology adoption, while enabling banks to maximise their effectiveness in the market.

On-boarding can be completed within approximately four weeks and will not be limited by existing internal technology infrastructure at the bank. Each bank is on a separate encrypted server stack managed by Algomi to meet the standards prescribed under ISO 27002, with multiple levels of redundancy, on a secure scalable service hosted by Amazon.

In parallel to the SaaS roll-out, all Honeycomb network participants will now have access to open source FIX connectivity. This allows the benefits of FIX as a common standard to be harnessed but ensures that sensitive and confidential pre-trade data exchange between client and dealer is still respected. Banks will be able to distribute their axes, prices and other pre-trade data via FIX to buy side customers, and the customers will be able to view this data in the context of their portfolios and easily respond with their indication of interests via FIX. Algomi will facilitate data attribution for both the buy and sell sides.

Our customers will now be able to have true bi-directional FIX connectivity in a secure and confidential way that goes beyond the simple point-to-point connection provided by FIX alone.

The Synchronicity platform intelligently matches disparate sales and trading information with the salespeople and traders associated with that data within a bank via a customisable crossing engine. Information is matched in real-time to ensure that all relevant information is presented for each execution opportunity. This includes reference data, IOIs, sales coverage, client portfolios, trades, live prices as well as voice and electronic inquiries. Under MAD/MAR and MiFID II, Synchronicity is well placed to help banks meet their compliance obligations including the pre- and post- trade transparency requirements. Encrypted Data is retained securely for 10 years using Amazon Glacier to meet Compliance and Legal requirements.