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BondWave Launches Next Generation Fixed Income Price Confidence Tool
Traders Magazine Online News, November 2, 2018
BondWave LLC, a leading financial technology firm focused on fixed income solutions, announced the launch of its EffiTM Market Calculator, powered by their proprietary prevailing market price (PMP) calculation engine. The Market Calculator leverages BondWave’s proprietary QTradesTM and QCurvesTM data and was developed to add an increased level of price confidence before buying, selling or bidding any bond.
The EffiTM Market Calculator utilizes BondWave’s proprietary PMP calculation engine to provide on-demand values for up to five securities across levels II, III and IV of the prescribed PMP Waterfall process. By leveraging the PMP process, which includes the algorithmic measurement for side-of-market and bid/offer spread adjustments by individual security or sector, the EffiTM Market Calculator helps fixed income participants meet additional business needs such as pre-trade price confidence and execution efficiency.
The calculator also offers clients the ability to configure their tool to compute pre-trade expected PMP values as well as expected pre-trade market bids or offers as it provides the flexibility and ease of accessing 20-plus settings to cater to each firm’s assumptions and use cases.
Key Use Cases:
Pre-Trade Expected PMP: The EffiTM Market Calculator can be configured to provide “expected PMP values” by strictly following the regulatory prescribed waterfall from levels II through IV. A click-through to the calculated steps and supporting data is available.
Pre-Trade Markets: The EffiTM Market Calculator can be configured to provide “expected pre-trade market bids or offers.” Settings can be adjusted to levels appropriate for odd-lot markets, mini institutional markets or institutional markets. Side-of-market adjustments enable the calculator to support auto-bidding.
Key Benefits:
Traders, Liaisons and Compliance: Provide PMP insights as well as pre-trade price confidence, help quickly evaluate internal and external RFQs (Request for Quote), as well as unfamiliar bonds, and gain significant operating efficiencies to do more in less time.
Risk Management: Independently calculate end-of-day, end-of-month or real-time mark-to-market values for trading inventories.
Financial Advisors: Provide expected PMPs to assist with bond comparison and investment selection with greater price confidence.
“As we have seen over the past year, it is becoming imperative for fixed income participants to continuously evolve their technology to meet the changing demands of the market,” said Michael Ruvo, CEO of BondWave. “With the assistance and flexibility of the EffiTM Market Calculator, clients will find themselves on a whole new playing field as price confidence is bolstered and their processes become more seamless.”
For more information on BondWave’s EffiTM Market Calculator, please visit www.bondwave.com or contact info@bondwave.com
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