Saxo’s bond-trading solution lowers execution time
Multi-asset trading specialist Saxo Capital Markets has seen a significant reduction in spreads and lower execution time for fixed income securities thanks to its digital bond-trading solution.
According to the firm, which covers over 5,000 government and corporate bonds in both developed and emerging markets, the new technology enabled clients to redirect their orders into an auction pool of 40 of the largest liquidity providers in the world to compete for those orders in just a few seconds.
The clients also saw an improvement in spreads of more than 25 basis points and an improved execution speed, with the time limit for any bond trade in Saxo’s platform being 45 seconds.
Saxo Capital Markets’ chief executive, Ben Smoker, said that the new trading technology made it possible for retail investors and mid-size institutions to directly access fixed income securities without having to go through the hassle of manual execution processes.
“The manual bond trading processes can be a challenge in Australia,” he said.
“Up until the recent launch of the Saxo Digital Bond Trading offering, accessibility to bond trading for Australian investors has been limited to only a handful of manual process brokers offering a somewhat anaemic variety of bonds.
“Both the spread of a bond trade and the time it takes to execute can be instrumental factors to the performance of our clients’ portfolios and can make a huge difference to potential returns – both in fixed income-only portfolios, but also a part of a multi-asset portfolio.”
Recommended for you
Private investment opportunities are moving up on the list of what investors want from their financial advisers, according to Natixis IM, and over half of firms say they are offering them more strategies.
Two asset managers have each expanded their product suite with the launch of new global equity funds for Australian investors.
Perpetual has confirmed it is in exclusive talks with global investment company KKR regarding an acquisition of its corporate trust and wealth management businesses.
Platinum Asset Management has put its two closed-end funds under strategic review in a bid to reduce the share price discount to pre-tax NTA and maximise shareholder value.