Neptune, the open standards network utility for pre-trade indications in bond markets, has issued an update on progress achieved since it launched in August with a limited set of buy-side and sell-side sponsors using the network. Neptune says it has seen strong growth in the amount of quality data flowing through the network; this enhances pre-trade transparency for those market participants already signed up, it says.
It adds that it is now extending the fixed income pre-trade information network to the global financial community. Brett Chappell, head of fixed income trading, Nordea Asset Management, said: “Traditional methods of data mining are static and incomplete. Neptune allows us to ascertain liquidity in real time, an important factor when making investment decisions. The technological ease of the system allows for seamless integration in our systems.”
Neptune offers a commoditised and open standard network that allows banks and investors to exchange controlled and targeted real-time axe and inventory using a robust data governance model. 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.
The sell-side involved in the Neptune Collaboration are now sending pre-trade indications to their clients across the Neptune network to which the asset managers are connected directly via any combination of the Neptune GUI, their own in-house developed OMS or an external OMS provider. The flexibility of connectivity options means they will be receiving pre-trade indications from multiple banks in a standard format with a single connection.
Grant Wilson, partner, Etrading Software, said: “The quality data within the system is already enabling trade generation. Enhancing the flow of electronic pre-trade information has been a focus of market participants for many years. For Neptune to have achieved this in a relatively short period of time is testament both to our core principles and simplicity and also to the tremendous support we have had from banks and asset managers who have collaborated closely with us and each other, in order to create an open standard, technology-based, non-profit utility.”
Neptune says its unique combination of data ownership, open-standard technology and collaboration creates an environment where the sell-side are comfortable delivering high quality, structured data to their clients. This will continue to be a core focus for the Neptune utility as the network grows.