Euroclear invests in liquidity matching fintech Algomi

Euroclear’s data and information business, Euroclear Information Solutions (EIS), is investing in the fintech company Algomi to improve liquidity in the global fixed income market.

Algomi develops and markets software for the fixed-income market which connects potential counterparties by identifying likely interest with available inventory. The company focuses on banks, institutional investors, inter-dealer brokers and exchanges.

The investment will enable EIS to derive benefit from Algomi’s bond liquidity matching system by making select bond holdings information available anonymously. Through the data aggregation tool, Algomi ALFA, counterparties can access the Euronext Synapse Multilateral Trading Facility and will be able to query those bond holdings, allowing them to trade in the securities.

By making this investment, EIS will increase trading opportunities and consequently transaction volumes in the illiquid pool of fixed income securities, including corporate and government bonds, not only for Euroclear clients, but across the fixed income market.

Euroclear joins earlier investors including stock exchange Euronext, asset manager AllianceBernstein and index provider S&P Global.

Peter Golder, CEO of Euroclear Information Solutions commented: “Our investment in Algomi is driven by client demand to access untapped liquidity pools. As a neutral infrastructure with a track record of providing high quality, robust post-trade services to the world’s leading financial institutions, we are well positioned to provide innovative ways to service clients, leveraging the wealth of data we already maintain. This venture represents an opportunity to transform our data into an asset to increase transparency and provide a substantial boost for global fixed income markets.”

Scott Eaton, CEO, Algomi added: “In Euroclear, we have a partner who understands the value of information and the importance of improving liquidity in the fixed income market. This is further recognition by a major market player of our strategy and technology. Combined with earlier deals, this gives us a global platform to unlock previously untapped resources in bond market liquidity. We look forward to welcoming Euroclear to the Algomi board and to working closely with them as we further develop our market aggregation and data surveillance offering to our clients.”