For fixed income traders, MiFID II has created challenges and inefficiencies around multiple sources of bond trade data. By integrating trade venues, price discovery and historical trades, how is Eikon helping to enhance workflows for #SmarterTrading?
- MiFID II has posed challenges for fixed income traders with the inefficiencies caused by the necessity of looking at multiple sources for their bond trade data requirements.
- Eikon brings together different trade venues, price discovery, and historical trades to efficiently integrate bond trade data into fixed income workflows.
- The Refinitiv aggregated bond service provides a holistic view of bond trade data after MiFID II to power best execution monitoring and reporting, including TCA.
MiFID II data has provided greater transparency into fixed income markets, presenting new opportunities for the financial community to identify trading strategies, ensure best execution for trades, and accelerate the shift to electronic trading and automation.
Despite this progress, the year-old regulation still poses challenges for fixed income traders. One of the biggest and most pressing issues surrounds the inefficiencies caused by having to look at multiple sources for data requirements.
Fixed income traders might get access to post-trade sources but the data can be difficult to use and analyze as each Approved Publication Arrangement (APA) delivers it in a different way.
With Eikon, we are helping fixed income traders to simplify their bond trade data requirements and integrate them into their workflows.
By providing easy access to the data they need, we are helping clients make smarter trading decisions whether that involves powering smarter human decision-making or automated trading by smarter machines.
Knowing they can trust the data to be consistent is why having a single source of clean and normalized data to power their applications and workflow is so important.
How does Eikon address the challenges of MiFID II?
Bringing together different venues
- The MiFID II aggregated bond service brings together in a single standardized display the majority of traded volume in a bond.
- This single display consolidates trades across multiple Multilateral Trading Facilities (MTFs) and Approved Publication Arrangements (APAs).
- We then enhance this consolidated display by showing a data summary of daily traded history. We also calculate real-time analytics to display relative value.
- The All Quotes app allows you to access the prices of bonds and swaps from a variety of sources: we have traded prices and pre-trade MiFID II prices alongside existing pricing sources which cover trading platforms (MarketAxess, Tradeweb), banks (including dealer runs), exchanges and the Refinitiv pricing service.
- The Cash Bond Repository app lets users see all the latest MiFID trades per MiFID Bond Type, Venue e.g. Tradeweb APA, but also filter them per sector, currency, market of issue etc.
- Historical trades for a bond are available in both a table format and a chart view. In both displays, we order trades by execution data to create a more coherent display.
- In the chart below, we have overlaid the contributed prices for a UK government bond in purple with green squares indicating where trades have taken place. The sub chart shows the volume of these trades. This is particularly important for indicating the price for a large volume trade.
The MiFID II data solution
For fixed income research and strategy validation, our aggregated service provides a single connection to multiple venues, giving you a broad market overview.
The MiFID II trade venues include:
|Refinitiv||Cboe Europe APA||Athens Exchange APA|
|Tradeweb APA & MTF||NASDAQ Nordic APA||Deutsche Boerse APA|
|Trax APA (MarketAxess)||Vienna Stock Exchange APA||Euronext APA|
|MTS Bondvision||Budapest Stock Exchange APA||TP ICAP MTF/OTF|
|Bloomberg APA & MTF||Athens Exchange APA||BGC Partners MTF/OTF|
|Oslo Børs APA||Deutsche Boerse APA||BME APA|
|TRADEcho APA (LSE)|
Eikon helps with bringing together different trade venues, price discovery, and historical trades, to efficiently integrate bond trade data into fixed income trading workflows. In addition, three updated apps in Eikon help to improve visibility so trading opportunities are not missed.