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Intelligent Bond Trading with iQbonds

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.

Benefits

  • Flexibly configurable user interface
  • Extensive and high-performance price calculation functionalities
  • Intelligent quote and order management for trading on D2D and D2C platforms
  • Smart trading strategies based on intelligent processes (Hit Reactions, Electronic Eye, etc.)
  • Complete post-trade integration
  • Quick and secure trading via mature monitoring mechanisms
  • Standardised integration and fulfilment of regulatory requirements (MiFID II, MiFIR, Basel IV, BaFin-RS etc.)
  • High-performance, secure gateways for connections to more than 50 future, D2D, and D2C markets as well as information providers and bank-internal systems
  • Support for trading of CDS, swaps, and ETFs

Your Benefits at a Glance

Integration of Price Calculation Functions

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.

Time-saving with Intelligent Automation

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.

Rapid and secure Reaction Capability

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.

 

System Flexibility

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:

• Jumbos
• Strips
• 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

Connectivity

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:

  • Bloomberg
  • Eurex
  • BGC Partners
  • NYSE Liffe
  • MarketAxess
  • MTS
  • BrokerTec
  • ICAP
  • SWX
  • 360T
  • Refinitiv (Thomson Reuters)
  • Senaf
  • HDAT
  • MOT
  • + weitere

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References

Your Contact

Bild von René Lemme, Abteilungsleiter Marketing bei valantic Trading Solutions

René Lemme

Sales & Marketing
valantic Trading Solutions AG