- Case Studies
Smart Trading Solution
iQbonds is valantic’s high-performance solution for electronic bond trading. Market making, bond pricing as well as the connection to electronic markets, exchanges and data platforms (e.g. Reuters, Bloomberg, Eurex, MTS) are integrated into one application.
iQbonds performs constant calculations of bond prices and yields while simultaneously providing access to various electronic markets where instruments can be quoted and orders can be placed and traded. iQbonds offers a complete solution for pricing, quoting and trading which meets the current challenges of electronic bond trading.
Via iQbonds gateways, essential pricing information from different trading platforms is aggregated into one application eliminating the need for the trader to spend time dealing with many different electronic trading platforms.
valantic offers a complex and comprehensive pricing system through iQbonds. As a matter of principle, the system differentiates between passive price sources (only for informational prices) and active price sources (for price calculation). Real-time data from different sources is imported to determine the active price sources. The trader can then use three price sources to calculate the current value of an instrument and decide which prices should be published on the market. iQbonds offers traders the possibility of calculating a price, a yield and a spread for the bid, mid and ask side of each price source. Of course, customer-specific pricing methods and self-calculated prices from third-party systems can also be implemented into the system.
Essential time-saving is made possible through intelligent mechanisms, which react automatically to market changes. For example, the “Electronic Eye” function can be used to monitor price or volume changes for particular bonds. If a divergence occurs, the system reacts automatically according to predefined rules and leaves the trader more time to concentrate on trading strategies.
When an order is executed in the market or when a quote is hit, a quick reaction is essential, for example the execution of an automatic futures hedge. In order to support the trader in this situation, it is possible to define certain “Hit Reactions” within iQbonds. Each “Hit Reaction” is tied to one or multiple bonds. iQbonds offers the option of choosing different reactions per bond, for example taking quotes offline, realising an immediate hedge or simply displaying a warning.
iQbonds’ reliability and definite speed advantages are convincing. The modern client-server architecture not only enables an exact and quick price calculation, but also a rapid transfer of prices to the markets in order to ensure an active market participation.
Another useful feature which can be used to react quickly to customer enquiries per telephone is the simulation function. This function allows the trader to determine for example, how a bond price would react to a change in spread compared to a certain interest curve or benchmark, without actually having to change the system price.
Keeping an eye on market activity and understanding what is happening in the market are very important as well as time-consuming tasks. valantic takes these tasks very seriously and monitors all market innovations in order to discover new market trends at an early stage. By doing this, iQbonds makes the most current and suitable calculation methods available to its clients. For example, exchange-traded funds can be recreated and future-dependent time buckets can be used in price calculations. valantic increases the spectrum of tradeable instruments in accordance with the needs of our clients.
Excerpt of currently tradeable financial instruments:
• Credits (Corporates)
• Step-up Bonds
• Interest Rate Futures
• Euro Bonds/Non-Euro Bonds
• Government Bonds
• Floating Rate Notes
• Exchange-traded Funds
• Asset-backed Securities
+ more asset classes
iConnect incorporates the connection to various trading systems via its own gateways. It is the link between valantic’s trading products and various electronic trading platforms, ECNs and financial institutions’ internal systems. In order to quickly adapt valantic’s software to the respective requirements, a highly motivated and experienced development team is in constant contact with the electronic trading platform representatives and remains informed about current developments. This close proximity to the markets enables valantic to offer new gateways to additional electronic trading platforms within an average development phase of only ten weeks. Furthermore, iConnect is an intelligent Communication Protocol with APIs. For many years, iConnect has been successfully utilised by various financial institutions in the integration of high performing, stable gateways.
Currently, access to the following markets, ECNs or information platforms is possible:
For investigations and exceptions with valantic’s FinCase, banks have the choice: The software cannot only be operated on premise or in the cloud but can also be outsourced as Business Process as a Service (BPaaS).
The leading Belgian asset manager has recognised the need of implementing the new ISO 20022 protocols at an early stage in order to avoid later pressure and to be duly prepared for the future. valantic supported the asset manager with the implementation of X-Gen. The generic workflow and message engine X-Gen allows fast adaptation and enables automated processes in the financial industry. As a result processes can be adapted, automated and automated faster, more securely and efficiently.
Global fixed income traders can streamline their workflow and seamlessly harness the power of AI to automate up to 50% of requests for quotes (RFQs) now that Overbond’s COBI-Pricing LIVE has been integrated into valantic’s…
Be sure to take advantage of this opportunity and discover the benefits of our smart trading solution in our free webinar. We look forward to your registration.