Vega-Chi Unleashes Credit ATS for Institutional Investors
![constantinos-antoniades-vegachi constantinos-antoniades-vegachi](/sites/default/files/styles/landscape_750_463/public/import/IMG/697/237697/constantinos-antoniades-vegachi-580x358.JPG.webp?itok=_jwSzzyh)
Vega-Chi says the ATS, offered exclusively to institutional investors, will initially focus on high-yield and distressed securities, recognizing that firms require better pricing and efficiency in execution as broker-dealers struggle to provide sufficient liquidity in those products.
"For the first time, the buy side has an interface to trade freely with each other, directly matching orders with others in the institutional investment community. This provides a compelling, cost-effective alternative to the dealer-to-client market structure, which has for so long been the only option available for market participants," says Constantinos Antoniades, Vega-Chi's CEO, describing the ATS as a turning point for the credit markets.
Fees for the ATS will also be lower than over-the-counter (OTC) transactions, ranging from 3 to 6.25 bond cents per executed trade, according to Vega-Chi, and execution on the platform will be fully anonymous.
"By directly sourcing liquidity from buy-side participants, Vega-Chi will provide institutional investors with superior pricing, while freeing up dealers to focus on higher-value, less capital-intensive services. Ultimately, this should be all-around good news for the industry," says Brad Golding, managing director at asset manager Christofferson Robb.
Forty buy-side firms are currently using the platform; Vega-Chi says 60 more are slated to join in the coming months as the market for execution in corporate bonds continues to evolve.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Trading Tech
Bloomberg, industry bodies push back on Cboe’s proposed OEMS rule change
Some industry bodies disagree with the options exchange’s proposal to carve its Silexx OEMS out of the SEC’s definition of an exchange facility and place it into a separate business line.
Waters Wrap: CME, Google and the pursuit of ultra-low-latency trading
CME Group and Google have announced Aurora, Illinois, as the location for the exchange’s new co-location facility. Anthony explains why this is more than just the next phase of the two companies’ originally announced project.
WatersTechnology latest edition
Check out our latest edition, plus more than 12 years of our best content.
Natixis refines in-house interoperability model
The French asset manager has refined its canonical data model over the last decade, as the interoperability movement continues to evolve.
Zeros and ones: Industry contemplates T+0 as the next step
With the North American transition to T+1 settlement complete, same-day settlement could be the next goalpost set, though skeptics are many.
IEX Cloud closure forces fintech clients to seek data alternatives
IEX says it is ditching its unprofitable data arm to focus on its core exchange business, but other vendors believe they can turn a profit from its former client base of fintechs, retail investors and some institutions.
This week: Nasdaq/IDX, IMC/Cboe, S&P, and more
A summary of the latest financial technology news.
The IMD Wrap: Déjà vu as exchange data industry weighs its options
Max highlights some of WatersTechnology’s recent reporting on data costs and capacity issues facing the options industry, and asks, haven’t we seen this before somewhere?
Most read
- IEX Cloud closure forces fintech clients to seek data alternatives
- Zeros and ones: Industry contemplates T+0 as the next step
- Natixis refines in-house interoperability model